FTX to Remove Turkish Units from Bankruptcy Case: What You Need to Know
The imploded cryptocurrency exchange FTX is seeking to remove its Turkish subsidiary from the scope of its U.S. bankruptcy case, citing concerns about cooperation from Turkish authorities. FTX is seeking to remove the Turkish subsidiary from the scope of its bankruptcy case, and said in a court filing on Friday that Turkish authorities were unlikely to follow the U.S. court’s orders.
Why is FTX Removing Turkish Units?
FTX\'s decision stems from the seizure of assets and a belief that Turkish authorities will not cooperate with the U.S. bankruptcy proceedings. As Benzinga reported, FTX and its affiliated debtors have asked the U.S. Bankruptcy Court in the District of Delaware to exclude two of its subsidiaries in Turkey, FTX Turkey and FTX TR, from the Chapter 11 proceedings.
Jurisdictional Disputes Highlighted
FTX is looking to eliminate Turkish units from its bankruptcy case equation. According to a filing made on Friday, FTX and its debtors brought to light a jurisdiction dispute. The core issue revolves around the ability of the U.S. bankruptcy court to effectively manage and recover assets within Turkey given the potential for non-compliance from local authorities.
U.S. Court Orders May Not Apply
The imploded cryptocurrency exchange FTX wants the Delaware bankruptcy court to expel its Turkish units from the bankruptcy case, arguing that U.S. court orders “do not" effectively extend to Turkey. Bankrupt crypto exchange FTX is seeking to remove Turkish units from its bankruptcy case as it does not suppose the Turkish authorities will cooperate after the seizure.
Impact on FTX Creditors
The removal of the Turkish units from the bankruptcy case raises questions about the recovery of assets for FTX creditors. The complexities of international bankruptcy law and the potential for legal challenges in Turkey add uncertainty to the process. FTX\'s Turkish units will be excluded from its U.S. bankruptcy proceedings after the failed crypto exchange said authorities in Turkey are unlikely to cooperate with U.S.
Key Takeaways:
- FTX is attempting to remove its Turkish subsidiaries from its U.S. bankruptcy proceedings.
- This decision is primarily driven by concerns about a lack of cooperation from Turkish authorities.
- The move highlights the challenges of managing international assets during bankruptcy proceedings.