Swiss Court Allows FTX to Pursue Sale of European Division

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Key takeaways:

  • The company reported that the petition for a Swiss moratorium action was submitted by FTX Europe AG, the holding company for its European operations, and was approved on Tuesday.
  • FTX Europe AG was included in FTX’s Chapter 11 bankruptcy filing in November 2022 in the District of Delaware of the United States Bankruptcy Court.

According to bankruptcy cryptocurrency exchange FTX, a Swiss court has granted permission for the company to reportedly sell its European operations.

In a statement on April 12, FTX stated that a Swiss court had granted a petition for a moratorium action submitted by the board of directors of FTX Europe AG. The European division of FTX would be permitted to facilitate the investigation of strategic options, including the previously reported prospective sale of its company in conformity with the bankruptcy court of the United States. The notification read:

“FTX Europe AG notes the Moratorium process will facilitate the exploration of strategic alternatives, including the previously disclosed potential sale of its business pursuant to U.S. Bankruptcy Court-approved bidding procedures,” 

FTX Europe AG was included in FTX’s Chapter 11 bankruptcy filing made in November 2022 in the District of Delaware of the United States Bankruptcy Court. The exchange’s European operation introduced a website in March that allows users to request withdrawals for the first time since the operation filed for bankruptcy.

In November, Sam Bankman-Fried’s formerly well-known international cryptocurrency exchange applied for Chapter 11 bankruptcy protection in the United States.

In accordance with the company’s notification, the Swiss court also named an administrator for FTX Europe AG, which is a debtor in the U.S. bankruptcy proceedings involving FTX.

The announcement made it clear that the embargo would not prevent the process of verifying customer balances in advance of approving the withdrawal of monies from FTX EU Ltd., which has its headquarters in Switzerland.

The former CEO of FTX, Sam Bankman-Fried, will face criminal and civil charges in the U.S. for allegedly taking part in fraudulent activities at the cryptocurrency exchange. Bankman-Fried pleaded not guilty to all 13 federal counts and will now stand trial in October.

FTX, Alameda, and its affiliates, who acquired the cross-chain bridge platform Ren Protocol in 2022, have authorized and given the platform orders to transfer all of its cryptocurrency assets to the wallets of FTX Debtors, according to information released on Wednesday by the platform. Ren contends that by taking this step, debtors can safeguard their assets even if their systems and infrastructure are shut down.

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Deep Dalal
Deep Dalal

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