The news of a possible FTX reboot resulted in a 10% spike in FTX’s FTT token to reach a high of $1.59.
Defunct cryptocurrency exchange FTX is looking to reorganize and continue services for customers outside the United States. FTX Group filed a draft creditor repayment plan on Monday that in addition to restarting the exchange with third-party investors, also revealed plans to repay creditors.
The company’s bankruptcy administrators propose that claimants be divided into groups first. All FTX.com customers are classified as “dotcom customers” and have the option of pooling their assets together to reboot the exchange – referred to in the document as the “Offshore Exchange Company” – for users outside the US.
“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,” reads the document.
The next class of claimants is users of FTX’s US exchange, referred to in the filing as “US customers”, followed by customers of its NFT exchange, then general unsecured claims, secured claims, and subordinated claims. General claims constitute those from lenders or trading partners of FTX’s sister company Alameda Research while subordinated claims are taxes and fines from penalties.
The plan proposes that the priority of claims will be determined based on the Priority Waterfall method with each class being allocated an equal share of the pool’s remaining assets after the preceding class has been serviced.
The news of a possible FTX reboot resulted in a 10% spike in FTX’s FTT token to reach a high of $1.59. According to CoinMarketCap data, it is currently trading at $1.45, up 7.43% over 24 hours. It is worth noting that the restructuring plan does not provide any allowance for FTT holders to make any claims.
The document states:
“No Holder of an FTT Claim shall receive any Distributions on account of its FTT Claim. On and after the Effective Date, all FTT Claims shall be canceled, released, and extinguished and shall be of no further force and effect, whether surrendered for cancelation or otherwise.”
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