Defunct crypto exchange FTX announced its plans for rebooting the platform and paying back its creditors; the FTT token reacted by a sudden 15% surge in price.
The Restart of the FTX Offshore Exchange Will Depend on its Creditors
On July 31, 2023, the bankrupt crypto exchange FTX Trading Ltd. filed a Draft Plan of Reorganization and a Term Sheet, confirming the rumors about a possible relaunch of the platform.
According to the plan, FTX divided its claimants into different categories: FTX.com offshore exchange customers, referred to as “dotcom customers”; the U.S. exchange customers; customers of the non-fungible token (NFT) exchange; general unsecured claims; secured claims; and subordinated claims.
The international “dotcom” users have the option to pool their assets and create a “rebooted” offshore FTX exchange, not available in the US. In this case, these customers are entitled to get a stake in the new platform instead of receiving a cash payout:
“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.”
The proposal stated that FTX administrators will use “the waterfall approach” to determine the priority of claims. This means that each class will receive a pro-rata payout from the pool of remaining assets after the payout to the preceding class is finished.
What about FTT and its Holders?
In response to the news, the FTX token jumped by about 15% reaching the mark of $1.55, even though it pulled back to $1.4 shortly after.
However, the plan clarified that the FTT holders won’t receive any compensation for their losses as their claims are to be canceled and extinguished:
“Claims by holders of FTT (whether or not held on any FTX ex
Go to Source to See Full Article
Author: Olga Krasilnikova
Tip BTC Newswire with Cryptocurrency
Donate Bitcoin to BTC Newswire
Donate Bitcoin Cash to BTC Newswire
Donate Ethereum to BTC Newswire
Donate Litecoin to BTC Newswire
Donate Monero to BTC Newswire
Donate ZCash to BTC Newswire
