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US Judge Approves Removal of FTX Turkish Units From Bankruptcy Case

The crypto exchange had asked the court to greenlight the exclusion of the units after Turkish authorities ordered the seizure of most of its assets in the country.

Updated May 9, 2023, 4:08 a.m. Published Feb 14, 2023, 9:31 a.m.

FTX CEO John J. Ray III (Nathan Howard/Getty Images)

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.

FTX Turkey Bankruptcy US

Sandali Handagama

Sandali Handagama is CoinDesk's deputy managing editor for policy and regulations, EMEA. She is an alumna of Columbia University's graduate school of journalism and has contributed to a variety of publications including The Guardian, Bloomberg, The Nation and Popular Science. Sandali doesn't own any crypto and she tweets as @iamsandali