FTX To Reopen Exchange
FTX, the once-bankrupt exchange, has officially confirmed its intention to relaunch its platform to serve offshore clients. The exchange’s bankruptcy administrators recently submitted a proposal outlining the restart of FTX.com but made it clear that former FTT holders would not be eligible for any benefits.
The FTX Debtors filed their Initial Plan of Reorganization and a summary term sheet to facilitate creditor feedback on the plan with stakeholders. Read details here: https://t.co/bDy7QdQ5Tx
— FTX (@FTX_Official) August 1, 2023
Collective Agreement for Exchange Relaunch
To move forward, the bankrupt exchange is working on organizing its creditors into distinct classes of claimants. One class of claimants has been identified with a potential pathway to relaunch the FTX exchange through collaboration with third-party investors. However, this group must reach a collective agreement before any decisions are made.
John J. Ray III, the Chief Executive Officer and Chief Restructuring Officer of the FTX Debtors, emphasized the aim of achieving a consensual plan for emerging from bankruptcy. The team is dedicated to resolving these matters in the third quarter of 2023 and intends to file an amended plan and a disclosure statement in the fourth quarter of the same year.
Claimant Division and Asset Prioritization
Regarding the division of claimants, the first group comprises individuals associated with the FTX.com offshore exchange, followed by customers of the U.S. exchange and its NFT exchange. Additionally, general unsecured claims, secured claims, and subordinated claims were identified. General claims included Alameda lenders, while subordinated claims consisted of taxes and penalty fines.
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The document also clarified that the priority of assets will be determined based on the “waterfall priorities” system. Former customers of FTX.com have the option to pool their assets to establish an “offshore exchange company” or a “rebooted” platform that is not accessible in the U.S. Furthermore, debtors may choose to forgo cash payouts and instead receive a stake in the new exchange. The exchange’s restructuring efforts are underway, and the company is hopeful of reaching a consensus among the claimants for a successful relaunch. As FTX navigates its path to recovery, offshore clients can anticipate the platform’s return with renewed services and offerings tailored to their needs.
