TechFlow news — FTX is seeking to exclude its Dubai subsidiary from the U.S. bankruptcy liquidation proceedings.
FTX Dubai was established in February 2022, but the company stated it did not conduct any business operations prior to filing for bankruptcy. They argue that under the laws of the United Arab Emirates, a voluntary liquidation process would allow timely distribution of positive cash balances after settling all outstanding debts and liquidating all assets.
The bankrupt FTX entities contend that excluding FTX Dubai from the U.S. proceedings will protect the debtor estate and ensure payment of pre-petition wages, salaries, and other compensation benefits to Dubai employees. They have requested the court to dismiss any orders requiring FTX Dubai’s participation in the litigation. A hearing is scheduled for August 23.
