FTX wants to exclude its Turkish division from bankruptcy proceedings

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Representatives of the exchange believe that the Turkish authorities will be busy investigating individual lawsuits against FTX Turkey and will not be able to comply with the requirements of the US bankruptcy court.

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Cryptocurrency exchange FTX is demanding that the Delaware Bankruptcy Court ruling its case not take into account the company’s Turkish division in the proceedings. Representatives of FTX refer to the fact that any official regulations from the United States do not apply in the legal field of Turkey. Therefore, there is no reason to believe that the Turkish authorities will meet halfway.

This means that the crypto exchange will not be able to properly control its subsidiaries in Turkey in order to fulfill the obligations that Chapter 11 of the Bankruptcy Code prescribes.

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The Turkish division is 80% owned by FTX Trading and 20% by SNG Investments, a subsidiary of Alameda Research. At the same time, FTX Turkey and SNG Investments were named as companies with almost no participation in FTX’s global operations. Moreover, lawsuits have begun to be filed against the debtors of FTX Turkey, the statement said, which will force the Turkish authorities to conduct separate investigations.

FTX is confident that the exclusion of Turkish companies from the case will save limited resources for creditors and debtors.

Earlier, Bloombegr estimated how much the law firm Sullivan & Cromwell, which is conducting the case, will earn from the bankruptcy of FTX – from tens to hundreds of millions of dollars.

Source: Bits

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