FTX Reboot Proposal Presented as Part of Reorganization Efforts, FTT Jumped 10% Overnight
Disgraced crypto exchange FTX is looking to reboot its operations nearly nine months after sliding into bankruptcy.
According to a draft plan filed on July 31st, FTX put forth a plan to categorize its creditors into distinct classes of claimants and offered a potential route for one of these classes to revive the now-defunct exchange with the help of third-party investors, provided that the group reaches a consensus on the proposal.
- As such, FTX.com offshore exchange users would be classified as “dot-com customers,” while the FTX.US clients will be called “US customers,” in addition to other groups.
- The proposal states that “each holder of an allowed Dotcom Customer Entitlement will receive a pro-rata share of the Dotcom Customer Pool.”
- Moreover, “each holder of an allowed US Customer Entitlement will receive a pro-rata share of the US Customer Pool.”
“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”
- As per the filing, the current draft plan outlines a framework for achieving a “global settlement” and a “good-faith compromise” concerning a vast and intricate array of claims, legal causes, and conflicts involving the Debtors.
- The global settlement involves several facets. However, the cancellation of FTT holders’ claim in terms of distribution stands out the other points.
The @FTX_Committee made a statement on John Ray’s plan of reorganisation. Worth reading in full.
Apparently, UCC input was ignored.
They make the following demands:
1. The UCC should select who runs FTX 2.0
2. Restart & Recovery Token
3. Earn interest on $2.6B cash holdings pic.twitter.com/GmyFYe1mgH— FTX 2.0 Coalition (@AFTXcreditor) August 1, 2023
- Undoubtedly, this move is expected to raise concerns among lawmakers and the crypto community alike.
- The exchange’s reputation has suffered significantly, and addressing the intricate task of compensating creditors remains an ongoing challenge.
- The latest development comes just a few days after FTX and another bankrupt crypto company, Genesis, reached an in-principle agreement months after feuding about funds.
- Shortly after the PR was released, FTX’s native token soared by 10% to a two-week high. Despite retracing slightly, the FTT trading volumes have shot up by triple digits since yesterday.
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