A Swiss court has approved a request by the bankrupt crypto exchange FTX to explore the sale of its European arm, the company announced Wednesday.
FTX Europe AG, the holding company of FTX's European business, filed a petition for a Swiss moratorium proceeding, which the court granted on Tuesday, according to the announcement. A moratorium proceeding, under Swiss law, enables debt restructuring or the preservation of assets for a limited time.
"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," the announcement said.
The once-prominent global crypto exchange run by Sam Bankman-Fried filed for Chapter 11 bankruptcy in the U.S. last November.
According to the company's announcement, the Swiss court also appointed an administrator for FTX Europe AG, which is also a debtor in FTX's bankruptcy proceedings in the U.S.
The moratorium will not stop the process to confirm customer balances in preparation for allowing the withdrawal of funds from Swiss-headquartered FTX EU Ltd.,the notice clarified.
Representatives for FTX did not immediately respond to a request for comment.
Recommended for you:
- Lido DAO’s Governance Token LDO Jumps on Treasury Proposal
- How Ethereum Will Be Transformed in 2022
- The Liability of DAOs and Their Founders Has Been Put to the Test in Court
- Join the Most Important Conversation in Crypto and Web3 in Austin, Texas April 26-28
Read more: FTX EU Sets Up Website to Repay Users
Edited by Stephen Alpher.
