FTT Crypto Files Motion to Exclude Dubai Unit from Bankruptcy Proceedings

FTX Crypto Exchange Moves to Remove Dubai Unit from U.S. Restructuring Proceedings

FTX crypto exchange has filed a motion in court to remove its Dubai unit from the ongoing restructuring proceedings in the United States. On Aug. 2, the crypto exchange argued that FTX Dubai had not conducted any business prior to the bankruptcy filing, and therefore the subsidiary has no chance of rehabilitating its operations. The court will start its first hearing on the issue on Aug. 23.

FTX Dubai is a wholly-owned subsidiary of FTX’s European arm which obtained a virtual asset service provider license from Dubai’s Virtual Assets Regulatory Authority (VARA). According to the court filing, FTX Dubai is balance sheet solvent and thus a voluntary “liquidation procedure in accordance with the laws of the United Arab Emirates would allow a timely distribution of the positive cash balance after payment of all outstanding liabilities and liquidation of all assets.”

The crypto exchange holds approximately $4.5 million in several accounts, of which $4 million is presently restricted by VARA as security for the License.

FTX Dubai Bankruptcy and Liquidation

On July 25, VARA informed FTX Dubai’s management that the restricted cash would be released in accordance with the United Arab Emirates law during the liquidation process of FTX Dubai.

FTX Dubai is expected to sign an agreement with the appointed liquidator to implement the necessary administrative procedures and ensure the orderly and efficient liquidation process.

Last November 11, FTX filed for bankruptcy and initiated bankruptcy proceedings for 102 associated entities from various countries.

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