FTX 2.0’s Cash Payback Plan
FTX 2.0 Group has announced a draft-creditor repayment plan as part of their bankruptcy reorganization. Instead of issuing their native cryptocurrency, FTT tokens, they will now pay out cash to customers with legitimate claims. The company intends to refine this approach based on feedback and evaluate customer claims in USD. They also aim to repay creditors by leveraging assets from different sectors of the business and may relaunch their offshore exchanges during the restructuring process.
FTT Token Recovery Unlikely
FTX 2.0 has decided against recovering FTT tokens due to their “equity-like characteristics.” The Chief Restructuring Officer, John J. Ray III, expressed satisfaction with filing the plan and committed to collaborating with creditors. The plan is still in preliminary stages and subject to modifications. FTX proposes a voting process for creditors to voice their opinions.
Impact on Native Tokens
FTX 2.0 recently sued their founder and his team, accusing them of misusing funds. This negatively affected the native coin’s value, but it has shown a 10% increase since then.
Hot Take: FTX 2.0’s Cash Payback Plan
FTX 2.0’s decision to pay out cash instead of issuing FTT tokens is a step towards rebuilding trust with creditors. However, the uncertain prospects of full compensation and the ongoing legal battle may still impact the company’s image in the crypto community. It remains to be seen how successful their restructuring efforts will be in gaining investors’ faith.
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