The Restart of the FTX Offshore Exchange Will Depend on its Creditors
The bankrupt crypto exchange FTX has announced plans to reboot the platform and pay back its creditors. The FTT token experienced a sudden 15% surge in price in response to the news. FTX has divided its claimants into different categories, including FTX.com offshore exchange customers, U.S. exchange customers, customers of the NFT exchange, and others. Dotcom users have the option to pool their assets and create a “rebooted” offshore FTX exchange, instead of receiving a cash payout. FTX administrators will determine the priority of claims using a “waterfall approach” and each class will receive a pro-rata payout.
What about FTT and its Holders?
The FTX token saw a 15% jump in price but won’t receive any compensation for their losses as their claims will be canceled. There are rumors that the FTX token will be eliminated altogether and claimants will receive their payout in USD. FTT was previously labeled an unregistered security by the SEC.
The FTX Drama Continues
FTX is still dealing with other consequences of its fall, including a dispute with bankrupt crypto company Genesis. Former CEO Sam Bankman-Fried is facing charges related to fraud and money laundering. Bankman-Fried has agreed to a gag order while awaiting an update on his bail status.
Hot Take:
The relaunch of FTX and the potential elimination of the FTX token raise questions about the future of the exchange. The involvement of creditors and the cancellation of FTT claims highlight the challenges faced by the defunct exchange. It remains to be seen how FTX will navigate these issues and regain the trust of its users.
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