The bankrupt crypto exchange FTX has requested court approval to exclude its Dubai unit from the ongoing restructuring proceedings in the United States.
FTX, the bankrupt crypto exchange, has filed a motion in court to exclude its Dubai unit from the ongoing bankruptcy proceedings that began in November 2022. The exchange argues that the Dubai unit had not conducted any business before the bankruptcy filing, and its rehabilitation is unlikely. The court’s first hearing on this matter is scheduled for August 23.
According to the filing, FTX Dubai is financially stable, and a voluntary liquidation procedure under United Arab Emirates law would allow a prompt distribution of positive cash balance after settling all liabilities and liquidating assets.
FTX Dubai, a wholly-owned subsidiary of FTX’s European arm, holds a virtual asset service provider license from Dubai’s Virtual Assets Regulatory Authority (VARA). The subsidiary currently has approximately $4.5 million in various accounts, with $4 million being restricted by VARA as security for the license.
Based on United Arab Emirates law, VARA confirmed that the restricted cash would be released during FTX Dubai’s liquidation, considering that all of its assets are in the UAE, and most of its prepetition activities occurred there.
FTX Dubai intends to cooperate with the appointed liquidator to ensure a smooth and organized administration of the liquidation process.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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