On Wednesday, the infamous cryptocurrency exchange FTX received approval from a Swiss court to investigate selling its European division.
According to the release, FTX Europe AG, the holding company for FTX’s European operations, requested a Swiss moratorium process, which the court approved on Tuesday.Â
According to Swiss law, a moratorium action facilitates debt restructuring or the temporary preservation of assets.
According to FTX Europe AG, the Moratorium process will make it easier to explore strategic options, including the previously stated prospective sale of the company under U.S. Bankruptcy Court-approved bidding procedures.
In November, Sam Bankman-Fried’s formerly well-known international cryptocurrency exchange applied for Chapter 11 bankruptcy protection in the United States.
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 United States.
The announcement made it clear that the embargo would not prevent verifying customer balances before approving the withdrawal of monies from FTX EU Ltd., which has its headquarters in Switzerland.
Also read: FTX’s downfall blamed on ‘hubris, incompetence, and greed’
