- FTX Dubai had no operations in the UAE before filing for bankruptcy, the company said.
- A hearing on the matter is scheduled for Aug. 23.
FTX wants to exclude its Dubai unit from bankruptcy proceedings in the United States, Coindesk reported, citing court documents. The liquidation of FTX Dubai under UAE law will allow for the timely distribution of all outstanding obligations.
Last November, FTX filed for Chapter 11 bankruptcy in the United States against 102 related entities from around the world. The Dubai-based platform, which began operations in February 2022, has been included in the process.
The company, however, claims that FTX Dubai had no operations prior to the UAE bankruptcy filing and therefore “does not have a reasonable likelihood of resuming its operations.”
The statement said:
“In addition, it should be noted that FTX Dubai is solvent. The debtors therefore believe that a voluntary liquidation procedure under the laws of the United Arab Emirates will allow for the timely distribution of the remaining cash balance after payment of all outstanding obligations and the sale of all assets.”
Reminder, bankrupt cryptocurrency exchange FTX submitted a reorganization plan on August 1.
The bankrupt cryptocurrency exchange FTX submitted a plan of reorganization.
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