{"id":19006,"date":"2023-01-31T09:43:52","date_gmt":"2023-01-31T17:43:52","guid":{"rendered":"https:\/\/coinnetworknews.com\/ftx-debtors-seek-dismissal-of-turkish-entities-in-chapter-11-bankruptcy-proceedings-bitcoin-news\/"},"modified":"2023-01-31T09:43:52","modified_gmt":"2023-01-31T17:43:52","slug":"ftx-debtors-seek-dismissal-of-turkish-entities-in-chapter-11-bankruptcy-proceedings-bitcoin-news","status":"publish","type":"post","link":"https:\/\/coinnetworknews.com\/ftx-debtors-seek-dismissal-of-turkish-entities-in-chapter-11-bankruptcy-proceedings-bitcoin-news\/","title":{"rendered":"FTX Debtors Seek Dismissal of Turkish Entities in Chapter 11 Bankruptcy Proceedings \u2013 Bitcoin News"},"content":{"rendered":"
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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\u2019s lawyers believe dismissing the entities \u201cis in the best interests\u201d of creditors, and FTX debtors do not believe Turkish authorities \u201cor any liquidator\u201d in the country will cooperate with officials from the United States.<\/strong><\/p>\n

FTX Lawyers Argue for Expelling Turkish Subsidiaries From Bankruptcy Proceedings<\/h2>\n

According to a recent bankruptcy court filing, FTX debtors have submitted a motion<\/a> to remove the company\u2019s Turkish entities from the Chapter 11 proceedings. The FTX-related units named in the court filing include FTX Turkey<\/a> and SNG Investments. The debtors claim that FTX Turkey was a locally operated crypto exchange and SNG Investments was a wholly-owned Alameda Research subsidiary that acted as a market maker.<\/p>\n

\"FTX<\/p>\n

Shortly after FTX collapsed, lawyers say \u201cTurkish authorities froze and seized substantially all the assets of the Turkish debtors.\u201d FTX\u2019s lawyers insist the two entities should be expelled from the bankruptcy proceedings, as they \u201cbelieve it is in the best interests of the debtors and their stakeholders.\u201d Furthermore, the debtors do not think the Turkish government will comply with the U.S. bankruptcy process.<\/p>\n

\u201cThe debtors do not expect the Turkish authorities or any liquidator in T\u00fcrkiye to seek recognition of their actions in the United States, and the debtors would intend to object to such recognition if reciprocity is not established,\u201d the filing explains.<\/p>\n

The news follows FTX lawyers asking<\/a> the court\u2019s permission to subpoena FTX co-founder Sam Bankman-Fried (SBF) and his inner circle. The filing<\/a> notes that while SBF has publicly stated he\u2019d like to \u201cexplain what happened\u201d and \u201ctry to help customers,\u201d he has \u201cnot responded to or complied\u201d with requests. \u201cAs a result, a court-authorized subpoena is necessary,\u201d the attorneys explained in the motion. In the latest filing, the debtors stress that dismissal of the Turkish debtors\u2019 Chapter 11 cases \u201cis warranted.\u201d<\/p>\n

Moreover, given that Turkish authorities froze the debtors\u2019 assets, a Chapter 7 conversion \u201cwould not serve the best interests\u201d of the debtors\u2019 estates and creditors, the filing adds. The court document also details that the funds were seized by the Turkish government because the Turkish Financial Crimes Investigation Board (MASAK) was conducting an investigation into FTX\u2019s business dealings. The lawyers conclude the bankruptcy court would not have any \u201clegal or practical effect\u201d in Turkey.<\/p>\n

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Alameda Research subsidiary<\/a>, Assets<\/a>, Bankruptcy Court<\/a>, bankruptcy proceedings<\/a>, bankruptcy process<\/a>, best interests<\/a>, business dealings<\/a>, Chapter 11<\/a>, Chapter 7 conversion<\/a>, court-authorized<\/a>, creditors<\/a>, crypto exchange<\/a>, dismissal<\/a>, Estates<\/a>, explain<\/a>, frozen<\/a>, FTX co-founder<\/a>, FTX debtors<\/a>, FTX motion<\/a>, FTX turkey<\/a>, help customers<\/a>, Inner Circle<\/a>, latest filing<\/a>, Lawyers<\/a>, legal<\/a>, liquidator<\/a>, locally operated<\/a>, market maker<\/a>, MASAK<\/a>, Sam Bankman-Fried<\/a>, sbf<\/a>, seized<\/a>, SNG Investments<\/a>, Subpoena<\/a>, Turkish authorities<\/a>, Turkish debtors<\/a>, Turkish subsidiaries<\/a>, United States<\/a><\/div>\n<\/div>\n

What are your thoughts on the recent motion by FTX debtors to dismiss their Turkish subsidiaries from Chapter 11 bankruptcy proceedings? Share your opinions in the comments below.<\/strong><\/em><\/p>\n

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\nJamie Redman <\/h6>\n

\nJamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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Disclaimer<\/strong>: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com<\/a> does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.<\/p>\n<\/div>\n

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