In order to exclude its Dubai division from the ongoing reorganization procedures in the United States, bankrupt cryptocurrency exchange FTX filed a motion with the court.
FTX Dubai Files a Petition Requesting Exclusion from Bankruptcy Proceedings
The cryptocurrency exchange said in a court filing on August 2 that because its FTX Dubai unit had no operations prior to declaring bankruptcy, the subsidies had no chance of restoring those operations. On August 23, the court will begin hearing the matter. The cryptocurrency exchange stated in its filing that FTX Dubai is solvent on its balance sheet and that, following the payment of all outstanding debts and the liquidation of all assets, a voluntary liquidation procedure in accordance with United Arab Emirates law would enable a timely distribution of the positive cash balance.
VARA Made a Statement on Restricted Funds
FTX Dubai is a direct, fully-owned subsidiary of FTX’s European division. A virtual asset service provider license was received by it from the Virtual Assets Regulatory Authority (VARA) of Dubai.
FTX Dubai now has $4 million restricted by VARA as security for the license, while the remaining $4.5 million is held by the company in a number of accounts. On July 25, VARA informed FTX Dubai management that such restricted funds will be released as part of the company’s liquidation in accordance with UAE legislation.
All of FTX Dubai’s assets are located in the United Arab Emirates and substantially all of FTX Dubai’s prepetition activities occurred in the United Arab Emirates, the Debtors have determined that a timely local voluntary liquidation of FTX Dubai in accordance with the laws of the United Arab Emirates is in the best interests of the Debtors and their estate,
The Filing
With the aim of promoting the orderly and effective administration of the liquidation, FTX Dubai is anticipated to enter into a contract with the appointed liquidator.
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