FTX Turkey Removed from FTX Bankruptcy Case by Delaware Bankruptcy Court

02/14/2023 09:49 • Crypto & Markets • 99 views

It is reported that the judge of the Delaware Bankruptcy Court approved the removal of its Türkiye subsidiary FTX Turkey from the FTX bankruptcy case. After FTX filed for bankruptcy last November, Türkiye’s law enforcement authorities announced that the company’s activities in the local area were under investigation, and then ordered the confiscation of most of FTX’s assets in the country. FTX’s new management in the United States argued that it was futile to include FTX Turkey and SNG Investments (whose assets and activities were mainly limited to Türkiye) in the restructuring plan. The court found that the request was in the best interests of FTX and its assets.

US Judge Approves Removal of Its Türkiye Subsidiary from FTX Bankruptcy Case

Interpretation of the news:

The Delaware Bankruptcy Court has given approval for the exclusion of FTX Turkey, a subsidiary of the cryptocurrency derivatives exchange FTX, from the FTX bankruptcy case. The announcement comes after Turkish law enforcement authorities launched an investigation into FTX’s local activities and subsequently seized most of the company’s assets in the country. FTX’s new management in the US argued that including FTX Turkey and SNG Investments (whose assets and activities were primarily based in Turkey) in the restructuring plan would be futile.

The decision to exclude FTX Turkey from the bankruptcy case was made in the best interests of both FTX and its assets. The judge found that including FTX Turkey would only complicate the restructuring process and that the subsidiary’s assets would be best managed separately. As a result, FTX Turkey will no longer be subject to the bankruptcy proceedings of FTX.

The announcement of FTX Turkey’s removal from the bankruptcy case by the Delaware Bankruptcy Court has significant implications for both FTX and the cryptocurrency industry as a whole. While FTX’s management argued that including FTX Turkey in the restructuring plan would be fruitless, the decision to exclude the subsidiary could also be viewed as a strategic move to protect FTX’s assets from the ongoing investigation and potential confiscation in Turkey.

FTX’s struggles in Turkey are not unique, as the country has become increasingly hostile towards cryptocurrency over the last year. In addition to cracking down on cryptocurrency exchanges and mining operations, Turkish authorities have also sought to create their own digital currency as a replacement for the Turkish lira. As a result, FTX has faced significant challenges in the Turkish market, making its removal from the bankruptcy case a positive development for the company.

In conclusion, the Delaware Bankruptcy Court’s decision to remove FTX Turkey from the FTX bankruptcy case is a significant development in the cryptocurrency industry. The move is a strategic one for FTX and could help protect the company’s assets from further seizure in Turkey. It also highlights the challenges that cryptocurrency companies face in a regulatory environment that is increasingly hostile towards digital assets.

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FTX Turkey Removed from FTX Bankruptcy Case by Delaware Bankruptcy Court

US Judge Approves Removal of Its Türkiye Subsidiary from FTX Bankruptcy Case

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