The proposed reorganization plan offers a mechanism for a certain group of debtors to pool their assets and set up a brand-new, offshore exchange.
- The bankruptcy administrators have submitted a suggested strategy that calls for the potential restarting of FTX.com.
- The relaunched exchange would only be accessible to consumers located abroad.
- Holders of FTT tokens would receive nothing under the proposed plan.
Defunct cryptocurrency exchange FTX has proposed dividing its creditors into distinct classes of claimants and has created a method for one class of claimants to restart the FTX exchange with third-party investors if the group agrees.
The file, which was published Monday night (U.S. time), divides the claimants into different categories. Customers of its U.S. exchange come in second (referred to as “U.S. customers”), followed by those of its NFT exchange, followed by general unsecured claims, secured claims, and subordinated claims. The first group is comprised of claimants of FTX.com’s offshore exchange, also known as “dotcom customers.” Claims from Alameda’s lenders or business partners are included in general claims, whereas taxes and fines from penalties are subordinated claims.
Also Read: The Rise and Fall of FTX: A Cryptocurrency Exchange’s Dramatic Journey
According to “waterfall priorities,” the order of these claims will be determined, and each class will get a pro-rata payout from the remaining funds once the previous class has finished. The precise payout order is decided after discussions with stakeholders.
Members of the Dotcom claims category, which includes former FTX.com users, may choose to pool their assets to build an “offshore exchange company” or a “rebooted” platform that is not available in the United States.
“Rather than all cash, the Debtors may determine that the Offshore Exchange Company remit non-cash consideration to the Dotcom Customer Pool in the form of equity securities, tokens or other interests in the Offshore Exchange Company, or rights to invest in such equity securities, tokens or other interests,” the document states, implying that the debtors may decide to forgo a cash payout in exchange for a stake in the new exchange.
Reboots of FTX had already been hinted at in billings from interim CEO John Ray III submitted in May, which include “FTX restart” or a “2.0 reboot”.
Also Read: FTX Claims Portal Opens, Enabling Creditors To File Their Claims
Wassielawyer, an anthropomorphic penguin-crypto Twitter legal personality based in Singapore, observed that the proposed restructuring plan does not include a provision for holders of FTT.
In a complaint submitted in December against FTX co-founder Gary Wang and former Alameda Research CEO Caroline Ellison, the SEC referred to the token as a security.
No Holder of a FTT Claim may receive Distributions in connection with that Claim. “On and after the Effective Date, all FTT Claims shall be cancelled, released, and extinguished and shall be of no further force and effect, whether surrendered for cancellation or otherwise,” the document stated.
Discussion about this post