FTX Seeks Dubai Unit’s Bankruptcy Dismissal And Settlements Ahead Of FTX 2.0 Launch
Beleaguered crypto exchange FTX files a motion to dismiss Chapter 11 bankruptcy for its subsidiary in Dubai. The debtors also seek the court’s order to schedule the settlement and stock exchange agreement between FTX, West Realm Shires, and IEX Group. It wants to complete all pending fund and token transfers from companies such as payment platform Stripe before launching FTX 2.0.
FTX Plans to Dismiss FTX Dubai From Bankruptcy
FTX filed a motion to dismiss the Chapter 11 bankruptcy case of FTX Exchange FZE (FTX Dubai), according to court filings on August 3.
FTX Dubai is a wholly-owned subsidiary of FTX Europe AG, which received a license from Dubai’s Virtual Assets Regulatory Authority on July 12, 2022. However, the exchange never started offering crypto-related services to investors.
“FTX Dubai is balance sheet solvent. Therefore, the Debtors believe that a solvent 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.”
Moreover, the debtors claim the court has jurisdiction to consider the motion and it’s in the best interest of creditors. Any court order will authorize debtors to clear pre-bankruptcy wages and salaries to Dubai-based employees.
Read More: ‘Worse Than Starting from Scratch,’ Kraken Founder Jesse Powell On FTX 2.0
Settlements Before FTX 2.0 Launch
FTX CEO John Ray seeks the completion of all settlements and pending wages to launch FTX 2.0, with the bidding process already opened for new investors.
FTX also filed a motion for settlement and stock exchange agreement between and among FTX Trading, West Realm Shires, and IEX Group. In addition, debtors seek a court order to enter a stimulation with the University of Toronto and funds from payments firm Stripe Inc.
Also Read:
- HashKey With Standard Chartered To Offer Crypto Retail Trading Services
- Binance Announces Zero-Fee Bitcoin And Ethereum Trading, Bullish For Crypto Market?
- Elon Musk’s X Sued For Copyright Infringement
- Will Bitcoin Rally as JPMorgan Tips Fed To End QT at FOMC Meeting?
- White House Crypto Czar Backs Michael Selig as ‘Excellent Choice’ To Lead CFTC
- Ripple Explores New XRP Use Cases as Brad Garlinghouse Reaffirms Token’s ‘Central’ Role
- Kyrgyzstan Adds Binance Coin (BNB) to National Crypto Reserve, CZ Confirms
- Ripple-Backed Evernorth Grows XRP Treasury to $1B Ahead of Nasdaq Listing
- Analyst Eyes Key Support Retest Before a Rebound for Ethereum Price Amid $93M ETF Outflows and BlackRock Dump
- Bitcoin Price Eyes $120K Ahead of FED’s 98.3% Likelihood to Cut Rates
- PEPE Coin Price Prediction as Weekly Outflows Hit $17M – Is Rebound Ahead?
- HBAR Price Targets 50% Jump as Hedera Unleashes Massive Staking Move
- Chainlink Price Outlook: Analyst Predicts $100 as Reserve Adds 63K LINK
- SUI Price Prediction as TVL and Monthly DEX Volume Hit All-Time Highs- What’s Next?
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
