FTX Seeks To Exempt Dubai Unit From US Bankruptcy

Crypto exchange FTX aims to safeguard the Dubai unit from U.S. bankruptcy cases.

Written By:
Dishita Malvania

Ftx Seeks To Exempt Dubai Unit From Us Bankruptcy

In a recent legal move, cryptocurrency exchange FTX has filed a motion to have its Dubai-based unit excluded from U.S. bankruptcy proceedings. 

The exchange, which filed for bankruptcy in the U.S. in November 2022, initiated Chapter 11 cases for 102 associated entities worldwide, including FTX Dubai, established in February 2022 and owned by the company’s European arm.

In the recent court filing, the bankrupt exchange argued that FTX Dubai did not conduct any business in the United Arab Emirates (UAE) before the bankruptcy filing and, therefore, “has no reasonable likelihood of rehabilitating its operations.”

“Additionally, FTX Dubai is a balance sheet solvent. Therefore, the Debtors believe that a solvent voluntary liquidation procedure following the laws of the United Arab Emirates would allow a timely distribution of the positive cash balance after payment of all outstanding liabilities and liquidation of all assets,” the filing said.

As the legal battle unfolds, FTX remains committed to cooperating with authorities in the appropriate jurisdictions to ensure transparency and compliance with relevant laws. 

FTX’s request to remove its Dubai unit from U.S. bankruptcy proceedings signifies the increasingly complex legal landscape that cryptocurrency businesses face as they operate globally.

The involvement of the Official Committee of Unsecured Creditors adds another layer of complexity to the bankruptcy proceedings, raising questions about the overall direction and outcome of the process.

The court is expected to reach a decision on the motion in the coming weeks.

Also Read: FTX and Genesis Reach Agreement in Bankruptcy Case



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Dishita Malvania is a Crypto Journalist with 3 years of experience covering the evolving landscape of blockchain, Web3, AI, finance, and B2B tech. With a background in Computer Science and Digital Media, she blends technical knowledge with sharp editorial insight. Dishita reports on key developments in the crypto world—including Litecoin, WazirX, Solana, Cardano, and broader blockchain trends—alongside interviews with notable figures in the space. Her work has been referenced by top digital media outlets like Entrepreneur.com, The Independent, The Verge, and Metro.co, especially on trending topics like Elon Musk, memecoins, Trump, and notable rug pulls.