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FTX Seeks Dubai Unit’s Bankruptcy Dismissal And Settlements Ahead Of FTX 2.0 Launch

FTX files multiple motions to dismiss bankruptcy for Dubai subsidiary, settlements, and receive funds to expedite FTX 2.0 launch.
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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.

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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

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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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Varinder Singh

Varinder has over 10 years of experience and is known as a seasoned leader for his involvement in the fintech sector. With over 5 years dedicated to blockchain, crypto, and Web3 developments, he has experienced two Bitcoin halving events making him key opinion leader in the space. At CoinGape Media, Varinder leads the editorial decisions, spearheading the news team to cover latest updates, markets trends and developments within the crypto industry. The company was recognized as Best Crypto Media Company 2024 for high impact and quality reporting. Being a Master of Technology degree holder, analytics thinker, technology enthusiast, Varinder has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers.

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Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and 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.
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