Proposed Re-Organization Plan for Defunct Crypto Exchange FTX
FTX, a defunct crypto exchange, has put forth a proposed re-organization plan that aims to pool assets and create a new offshore exchange. The plan involves organizing creditors into different classes of claimants and offering a pathway for one class to restart the FTX exchange with third-party investors. Here are the key points of the plan:
1. Claimant Categories: The filing categorizes the claimants into various groups, including dotcom customers, U.S. customers, NFT exchange customers, general unsecured claims, secured claims, and subordinated claims.
2. Waterfall Priorities: The priority of these claims will be determined according to a “waterfall” system, with each class receiving a pro-rata payout after the preceding class is finished.
3. Offshore Exchange Company: Former customers of FTX.com, known as Dotcom claimants, have the option to pool their assets and create an offshore exchange company. Instead of a cash payout, they may receive non-cash consideration in the form of equity securities, tokens, or other interests in the new exchange.
4. FTT Token Holders: The proposed plan does not include any allowance for holders of FTT, the token associated with FTX. All FTT claims will be canceled and of no further force and effect.
5. Potential Reboot: The document hints at the possibility of rebooting FTX, with references to an “FTX restart” or a “2.0 reboot” in previous billings.
In conclusion, FTX’s proposed re-organization plan offers a way for a specific class of debtors to create a new offshore exchange. However, it does not address the concerns of FTT token holders.
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