FTX’s Turkish units will be excluded from its U.S. bankruptcy proceedings after the failed crypto exchange said authorities in the country are unlikely to cooperate with U.S. courts.
Just days after FTX filed for bankruptcy last 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 estates. Parent company FTX Trading Ltd. owns 80% of FTX Turkey while SNG Investments is fully owned by FTX’s sister trading firm, Alameda Research.