New Reorganization Plan Allows Debtors to Combine Assets for Offshore Exchange Creation.
FTX, the bankrupt crypto exchange, has submitted a plan that may lead to the revival of FTX.com. The new exchange would serve offshore customers exclusively. However, FTT token holders won’t receive any compensation under this proposal.
The plan also organizes creditors into different classes, allowing one class to potentially restart the exchange with the help of third-party investors if they all agree to it.
The filing, posted on Monday night U.S. time, categorizes the claimants into different groups. The first group consists of “dotcom customers,” who are claimants of the FTX.com offshore exchange.
The next group is the “U.S. customers” of the U.S. exchange, followed by customers of the NFT exchange. After that, there are general unsecured claims, secured claims, and subordinated claims.
The general claims include those from Alameda’s lenders or trading partners, while subordinated claims cover taxes and fines from penalties.
The priority of these claims will be determined using “waterfall priorities.” Each class will receive a proportionate payout from what remains in the pool after the previous class is compensated. The specific order of payout will be decided through negotiations with stakeholders.
Former customers of FTX.com, known as “Dotcom claimants,” have the option to combine their assets to create a new offshore exchange company or a “rebooted” platform that won’t be accessible in the U.S.
Instead of receiving cash, the debtors may choose to offer the Dotcom Customer Pool non-cash consideration, such as equity securities, tokens, or other interests in the new exchange, or the right to invest in these assets. This means the debtors might offer a stake in the new exchange instead of a cash payout.
Previously, there were hints of potential reboots for FTX, with references to “FTX restart” or a “2.0 reboot” in billings from interim CEO John Ray III in May.
Notably, the proposed restructuring plan does not address the holders of FTT tokens. The SEC classified FTT as a security in a complaint filed in December against FTX co-founder Gary Wang and former Alameda Research CEO Caroline Ellison.
“No holder of an FTT claim will receive any payouts for their FTT claim. Once the Effective Date is reached, all FTT claims will be canceled, released, and considered null and void, regardless of whether they are surrendered for cancellation or not,” the document states.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
Join Cryptos Headlines Community
Follow Cryptos Headlines on Google News and Threads App
