• FTX debtors have filed a motion requesting the dismissal of their Turkish subsidiaries from the Chapter 11 bankruptcy proceedings.
• The motion claims that the dismissal is in the best interests of creditors, and FTX debtors do not believe Turkish authorities will cooperate with officials from the United States.
• In addition, FTX lawyers are asking for permission to subpoena co-founder Sam Bankman-Fried (SBF) and his inner circle for more information about the company’s collapse.
FTX Debtors Seek Dismissal of Turkish Entities
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 claim that 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.
Reasoning Behind Motion
The motion argues that shortly after FTX collapsed, Turkish authorities froze and seized substantially all assets held by two related companies: FTX Turkey – which operated locally as a crypto exchange – and SNG Investments – a wholly-owned Alameda Research subsidiary acting as a marketmaker. The filing also suggests that given these circumstances, expulsion of these entities from bankruptcy proceedings is warranted; furthermore, it adds that given that these assets were frozen by Turkish government due to an investigation conducted by Financial Crimes Investigation Board (MASAK), conversion to Chapter 7 would not serve any beneficial purpose for either creditors or debtors’ estates.
Request for Subpoena
In addition to this request for dismissal, FTX lawyers are also seeking permission to issue subpoena against co-founder Sam Bankman-Fried (SBF) and his inner circle for more information about company’s collapse. Despite SBF publicly expressing willingness to provide explanations and help customers affected by collapse, he has yet to respond or comply with requests made so far; hence necessity of subpoena authorization granted by court is requested in this filing.
Court Ruling Expected Soon
At present moment it remains unclear what decision judge presiding over case will make regarding both motions presented by debtors; however it is expected ruling will be issued soon which should finally bring some clarity into current situation surrounding defunct crypto exchange.
FTX debtors have submitted a motion requesting removal of their twoTurkish subsidiaries from Chapter 11 bankruptcy proceedings due to lack cooperation expected from local authorities; additionally they are seeking court authorization for subpoena against SBF and his inner circle as part of effort to recover more data regarding company’s collapse. Judge presiding over case is expected to make ruling soon on both motions presented by debtors which should provide much needed clarity on current state of affairs surrounding defunct crypto exchange.