-FTX Trading Ltd. has asked the bankruptcy court in Delaware to exclude its Turkish subsidiaries from the case.
– FTX Turkey is a local subsidiary of FTX and is owned by FTX Trading Ltd. and SNG Investments, an indirect wholly-owned subsidiary of Alameda Research LLC.
-Local authorities in Turkey may seize any FTX Turkey assets they deem necessary to fulfil judgements handed down by Turkish courts.
FTX Trading Ltd., the market maker, has recently requested the Delaware bankruptcy court to exclude its Turkish subsidiaries from the ongoing bankruptcy proceedings. FTX Turkey is a local subsidiary of the defunct FTX cryptocurrency exchange and is owned by FTX Trading Ltd. and SNG Investments, an indirect wholly-owned subsidiary of Alameda Research LLC. FTX claims that since court decisions from U.S. courts do not have a legal or practical impact in Turkey, it will be unable to exercise sufficient control over the Turkish units’ operations in order to fulfil its obligations under the Bankruptcy Code.
Furthermore, the petition also stated that FTX Turkey and SNG Investments are not strategic to FTX’s overall business, and citizens have reportedly begun filing private claims and beginning execution actions against FTX Turkey Turkish Debtors. Therefore, local authorities in Turkey may seize any FTX Turkey assets they deem necessary to fulfil judgements handed down by Turkish courts, and any assets owned by FTX Turkey in the nation may be subject to private execution.
The filing from FTX Trading Ltd. comes after the Turkish Treasury and Finance Ministry seized the assets of the FTX cryptocurrency exchange and began investigating the exchange’s downfall in November. As the court in Delaware has yet to decide on the exclusion of the Turkish subsidiaries, FTX Trading Ltd. has requested the court to decide on the matter quickly and to not waste time or resources on the matter.
It remains to be seen whether the court will grant FTX Trading Ltd.’s request and exclude the Turkish subsidiaries from the bankruptcy proceedings. However, the filing shows that FTX Trading Ltd. is taking all necessary steps to ensure that its Turkish subsidiaries remain protected from the proceedings.