• FTX debtors have filed a motion to dismiss their Turkish subsidiaries from the Chapter 11 bankruptcy proceedings.
• The lawyers of the defunct crypto exchange argue that doing so is in the best interests of creditors.
• They also do not expect the Turkish government to cooperate with the U.S. bankruptcy process.
FTX debtors have recently submitted a motion to the court requesting to dismiss their Turkish subsidiaries from the Chapter 11 bankruptcy proceedings. This motion was filed due to the fact that the defunct crypto exchange believes it is in the best interests of the creditors.
The entities named in the court filing include FTX Turkey and SNG Investments. FTX Turkey was a locally operated crypto exchange, while SNG Investments was a wholly-owned Alameda Research subsidiary that acted as a market maker. Unfortunately, shortly after FTX collapsed, Turkish authorities froze and seized substantially all the assets of the Turkish debtors.
In the motion, FTX’s lawyers state that they do not expect the Turkish government to cooperate with the U.S. bankruptcy process. They believe that if reciprocity is not established, they would intend to object to such recognition.
The motion follows the filing by FTX lawyers asking the court’s permission to subpoena FTX co-founder Sam Bankman-Fried (SBF) and his inner circle. This was done in order to uncover any information that could potentially help creditors recover their losses.
At this point in time, it is still unclear as to whether or not the court will approve the motion. If the court approves the motion, it would mean that FTX’s Turkish entities would be expelled from the bankruptcy proceedings. This could potentially help creditors recover their losses and bring some closure to the situation.