The crypto exchange FTX has received the approval of a Swiss court to explore the sale of its European arm. This was made possible due to the filing of a petition for a Swiss moratorium proceeding by FTX Europe AG, the holding company of FTX's European business. A moratorium proceeding, under Swiss law, enables debt restructuring or the preservation of assets for a limited time.

FTX Europe AG noted that this Moratorium process will facilitate the exploration of potential strategic alternatives, including the potential sale of its business, with the approval of the U.S. Bankruptcy Court. Additionally, the Swiss court appointed an administrator for FTX Europe AG, which is a debtor in the Chapter 11 bankruptcy proceedings in the U.S.

FTX originally filed for Chapter 11 bankruptcy in the United States back in November of 2020. The company had been a prominent global crypto exchange until this filing. The moratorium process will not interrupt the proceedings to confirm customer balances in preparation for allowing the withdrawal of funds from Swiss-headquartered FTX EU Ltd.

This is an intriguing development for FTX and the crypto community alike considering the difficulties faced during the initial bankruptcy filing. The FTX exchange offers its customers access to various trading products as well as storage of various digital assets like Bitcoin, Ethereum and other altcoins. Currently, one of the primary targets of FTX is to assure its customers that they will eventually have access to their funds through the process.

FTX has become one of the most popular crypto exchanges today, and the news that it is exploring the sale of its European arm is likely to cause some excitement amongst users and investors. For now, it is uncertain what this will look like and if a sale will be successful. But FTX has made it clear that it is committed to ensuring the safety of its customers by way of transparency, and this is certainly a step in the right direction.



Other News from Today