FTX, the bankrupt crypto exchange, has taken legal action by filing a court motion to remove its Dubai unit from the ongoing restructuring proceedings in the United States.
Back in February 2022, FTX had set up its Dubai branch, which was owned by the company’s European arm, and this specific entity became part of the ongoing proceedings.
FTX Dubai was one of the 102 associated firms for which Chapter 11 cases were initiated when the exchange filed for bankruptcy last year.
However, in the latest court filing, the bankrupt exchange presented the argument that its Dubai unit had not conducted any business activities before the bankruptcy filing, raising doubts about its prospects for operational revival.
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To strengthen their plea, the firm’s legal representatives asserted that:
FTX Dubai is balance sheet solvent. Therefore, the Debtors…
