Odaily News According to court documents on Thursday, FTX hopes to exclude its Dubai subsidiary from the US bankruptcy proceedings. In November last year, FTX initiated Chapter 11 bankruptcy proceedings for 102 affiliated entities worldwide when it filed for bankruptcy in the United States. FTX Dubai was established in February 2022 and is owned by the company's European subsidiary, making it one of the entities involved in the litigation.



However, the FTX bankruptcy entity argues in the documents that FTX Dubai did not conduct any business before applying for bankruptcy in the United Arab Emirates (UAE), thus "there is no reasonable possibility of resuming operations." "In addition, FTX Dubai's balance sheet has the ability to meet its obligations. Therefore, the debtor believes that, under the laws of the UAE, a voluntary liquidation procedure with the ability to meet obligations will allow for timely distribution of positive cash balances after payment of all outstanding debts and liquidation of all assets."



The FTX bankruptcy entity argues that any court orders involving FTX Dubai during the litigation period should be valid, but dismissing the request is "necessary" to protect the debtor and authorize them to pay pre-bankruptcy wages, salaries, and other compensation, benefits, and expenses to Dubai employees. The relevant hearing is scheduled for August 23rd. (CoinDesk)