FTX Confirms Plan to Relaunch Exchange

Lavina Daryanani
Source: The Verge

FTX has confirmed its plans to relaunch the exchange. The bankruptcy administrators recently filed a proposition regarding the restart of FTX.com but the exchange will serve offshore clients. According to the plan, former FTT holders are not entitled to get anything.

The bankrupt exchange is also looking to organize its creditors into different classes of claimants. In the filing, a pathway has been mapped out for one class of claimants to restart the FTX exchange with third-party investors. However, the group has to collectively agree before a decision.

Also Read: All Crypto Assets Except Bitcoin Are Securities: SEC to Coinbase

FTX’s goal is to emerge from bankruptcy: John J. Ray III

John J. Ray III, Chief Executive Officer and Chief Restructuring Officer of the FTX Debtors said in the official statement,

“Our goal is to achieve a consensual plan and emergence from bankruptcy. We are committed to working through these matters in the third quarter of 2023 and to filing an amended plan and a disclosure statement in the fourth quarter of 2023.”

As far as the group division of the claimants is concerned, the first group consists of people associated with the FTX.com offshore exchange. Customers of the U.S. exchange were next and were followed by customers of its NFT exchange, general unsecured claims, secured claims, and subordinated claims. Moreover, Alameda lenders were included under general claims. Subordinated claims included taxes and penalty fines.

The document revealed that the priority of the assets will be determined based on the “waterfall priorities.” Furthermore, the former customers of FTX.com can choose to pool their assets to create an “offshore exchange company” or a “rebooted” platform, not available in the U.S. The document also suggested that debtors can forgo cash payouts, and instead get a stake in the new exchange.

Also Read: SEC Asked Coinbase to Halt Trading of All Cryptos, Except Bitcoin