- The FTX Dubai didn’t file for bankruptcy in the United Arab Emirates.
- Removing the Dubai unit from legal proceedings is necessary to protect the debtors.
FTX, the bankrupt crypto exchange, has recently reached an agreement on principle with Genesis to resolve the claims made by both firms in an ongoing lawsuit over Chapter 11 cases. In the latest development, the crypto exchange wants to remove its Dubai unit from the legal proceedings, according to court filings on Tuesday.
According to the report, the crypto exchange FTX filed for bankruptcy in the United States last November. Moreover, the chief executive, Sam Bankman-Fried, stepped down after the liquidity crisis. And then, it started Chapter 11 cases for 102 associated entities from around the world.
FTX Dubai Unit Didn’t File for Bankruptcy
The FTX Dubai was set up in February 2022 and is owned by the exchange’s European arm. It was also one of the units that included legal proceedings. However, the bankrupt exchange argued that the Dubai unit didn’t file for bankruptcy in the United Arab Emirates. So there is no way to include it and rehabilitate its operations. Moreover, FTX wants to remove FTX Dubai from the filings.
Adding to that, the filing stated that FTX Dubai is a balance sheet solvent, which means it provides a summary of all assets and liabilities held. Moreover, the debtors believe that the solvent voluntary liquidation procedure is in line with UAE laws. It also provides a timely positive cash balance after every outstanding liability and the liquidation of all assets.
The crypto exchange argues that if any court includes FTX Dubai in the proceedings, it should be removed. Moreover, the decision is necessary to protect the debtors and authorize them. The hearing is scheduled for August 23, 2023.
