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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.
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