• FTX debtors have filed a motion to dismiss their Turkish subsidiaries from the Chapter 11 bankruptcy proceedings.
• The motion states that dismissal of the entities is in the best interests of creditors and does not believe Turkish authorities will cooperate with US officials.
• Furthermore, lawyers for FTX requested permission to subpoena co-founder Sam Bankman-Fried, who has not responded to requests.
FTX Debtors File Motion To Dismiss Turkish Subsidiaries From Bankruptcy Proceedings
FTX debtors have filed a motion with the court requesting to dismiss its Turkish subsidiaries from the Chapter 11 bankruptcy proceedings. The defunct crypto exchange’s lawyers believe dismissing the entities „is in the best interests“ of creditors, and FTX debtors do not believe Turkish authorities „or any liquidator“ in the country will cooperate with officials from the United States.
Reasons For Dismissal Of Entities
According to a recent bankruptcy court filing, FTX debtors have submitted a motion to remove the company’s Turkish entities from the Chapter 11 proceedings. The FTX-related units named in the court filing include FTX Turkey and SNG Investments. The debtors claim that FTX Turkey was a locally operated crypto exchange and SNG Investments was a wholly-owned Alameda Research subsidiary that acted as a market maker. Shortly after FTX collapsed, lawyers say „Turkish authorities froze and seized substantially all the assets of the Turkish debtors.“
Subpoena Requested For Co-Founder SBF
The news follows FTX lawyers asking for permission to subpoena FTX co-founder Sam Bankman-Fried (SBF) and his inner circle. The filing notes that while SBF has publicly stated he’d like to „explain what happened“ and „try to help customers,“ he has „not responded or complied“ with requests. As such, they request authorization for a subpoena as necessary according to them filing.
Chapter 7 Conversion Not Optimal Solution
In addition, they stress that dismissal of the Turkish debtors‘ Chapter 11 cases is warranted given that conversion into Chapter 7 would not serve best interests of their estates nor creditors due to assets being frozen by government when Financial Crimes Investigation Board conducted an investigation on them shortly after collapse of exchange.
Consequently, this latest filing stresses importance for immediate dismissal of said entities from bankruptcy proceedings so as ensure quick resolution process among stakeholders where all parties are treated fairly accordingly without obstruction from foreign governments or other factors due course of action taken here by company’s legal team towards ensuring justice served properly amongst all involved parties within particular dispute resolution situation at hand here today regarding now defunct crypto exchange known as ‘FTX’