FTX's European arm may soon have a new owner.
As cryptocurrency exchange FTX undergoes bankruptcy proceedings, a Swiss court has granted the company approval to sell its European business.
According to the press release shared on April 12th, the Swiss court approved a petition submitted by FTX Europe AG's board of directors regarding a moratorium proceeding.
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This legal decision enables FTX's European subsidiary to "facilitate the exploration of strategic alternatives, including the previously disclosed potential sale of its business," in line with United States bankruptcy court regulations.
FTX Europe AG had been included in FTX's Chapter 11 filing at the US Bankruptcy Court for the District of Delaware in November 2022.
In a notable move, the crypto exchange's European division introduced a website in March, allowing customers to make withdrawal requests for the first time since the bankruptcy declaration. Regarding the matter, the press release noted:
Importantly, the previously announced process for confirming customer balances in preparation for allowing the withdrawal of funds from FTX EU Ltd. is unchanged by the Moratorium.
It is worth noting that, earlier this month, major news outlets demanded Delaware Bankruptcy Court reveal the identities of FTX's non-US customers. The media outlets argued that the press and the public have "a presumptive right of access to bankruptcy filings."
The ongoing legal battles from all fronts are causing FTX more and more money. In February, FTX had to pay a whopping $32.5 million for its legal fees and expenses. The majority of funds were given to law firms Sullivan and Cromwell, as well as Alvarez and Marsal.
