FTX To ‘Remove’ Turkish Units From Bankruptcy Case?

Lavina Daryanani
Source: The Verge

FTX is looking to eliminate Turkish units from its bankruptcy case equation. According to a filing made on Friday, FTX and its debtors brought to light a jurisdiction dispute and claimed that Turkish authorities will not essentially adhere to orders made by U.S. courts.

Also Read: Bitcoin Has ‘Moved on’ From The FTX Saga: Here’s Why

Turkish authorities aren’t bound by bankruptcy provisions: FTX

Turkey’s Financial Crimes Investigation Agency started investigating FTX post its collapse in Q4 2022. At that time, the agency revealed that it was looking into people, institutions, banks, and crypto service providers related to FTX.

FTX Turkey was a part of the 134 entities linked to Sam Bankman-Fried’s empire that sought protection from bankruptcy in the U.S.

Now, in the latest filing, FTX emphasized that the Court cannot enforce its own orders in Turkey. It also added that neither could it bind the parties necessary for successful proceedings with respect to the Turkish Debtors. The filing noted,

“Turkish authorities are not bound by the provisions of the Bankruptcy Code and the Debtors have no reason to believe that the Turkish government will comply with this Court’s orders… Accordingly, continuing these chapter 11 proceedings will result in a waste of scarce resources and the unnecessary accumulation of fees.”

Notably, the request entails FTX Turkey and SNG Investments, a subsidiary of Alameda Research. The assets and activities of both entities are by and large limited to Turkey. Additionally, they were labeled as “not strategic” in the filing.

The official document, however, pointed out that the parent company could still take action under Turkish law. In fact, some Turkish creditors have already started filing claims in local courts.

The hearing on this issue is scheduled for Mar. 8 at 1:00 p.m. ET.

In another recent development last week, the exchange’s creditor list was made public. According to the same, big names like Apple, Netflix and Binance were a part of the list to which FTX owed money.

Also Read: Goldman Sachs Denies Being FTX’s Creditor