FTX's Turkish units will be excluded from its U.S. bankruptcy proceedings after the failed crypto exchange said authorities in Turkey are unlikely to cooperate with U.S. courts.
Delaware-based Bankruptcy Court Judge John T. Dorsey signed an order approving the dismissal on Monday in response to a January request by FTX representatives.
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Just days after FTX filed for bankruptcy in November, Turkish law enforcement announced the company's local activities were under investigation, and later ordered the seizure of a majority of FTX's assets in the country. FTX's new management in the U.S. argued it was unproductive to include FTX Turkey and SNG Investments – whose assets and activities are largely confined to Turkey – in the restructuring plans.
The court found the request is "in the best interests of" FTX and its estate. Parent company FTX Trading Ltd. owns 80% of FTX Turkey while SNG Investments is fully owned by FTX’s sister trading firm, Alameda Research.