The restructuring plan reveals that FTX.com is preparing to relaunch as an offshore crypto exchange.
FTX.com has unveiled its plans for the firm's restructuring processes. A key element of this proposal was the relaunch of the defunct crypto exchange as an offshore entity.
On July 31st, the company submitted the documents detailing a restructuring plan that maps out the company's approach to resolving an "exceptionally large and complicated collection of claims."
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Overall, 13 classes of claims have been established, focusing on the US customer claims, FTX.com customer entitlement claims, and non-fungible tokens (NFTs) customer claims.
FTX aims to establish three primary recovery pools corresponding to segregated assets attributed to FTX.com customers, FTX US customers, and investments company argues were not linked to the two failed crypto exchange branches.
In the case of NFT-holding users, they will also receive their separate classification. NFTs are scheduled to be returned to rightful customers unless they were "destroyed" or lost.
To resolve the settlement globally, FTX is set to value claims in US dollars based on a still-to-be-approved valuation methodology by the Bankruptcy Court, accounting for disputes over assets held on FTX.com and FTX US exchanges.
The proposed plan acknowledges "shortfall" claims by the two FTX exchange branches against this third pool of general assets. This provision is designed to "compensate" the crypto exchanges for the unauthorized borrowing and misappropriation of assets that the former CEO, Sam Bankman-Fried, and his close associates are accused of perpetrating.
The proposal also suggests the termination of intercompany claims and the "extinguishment of FTT claims." This clause indicates that FTT token holders may not be compensated for their token holdings.
The concluding section of the plan discusses intentions to liquidate FTX's estates to make cash payouts to customers and creditors. Yet, an intriguing clause mentions that customers might be offered voluntary choices in association "with a restart of an offshore exchange." This provision implies that specific creditors might choose equity, tokens, or other interests in a potentially revived offshore FTX exchange.
During the bankruptcy proceedings, FTX sought legal action against Bankman-Fried and other implicated directors, aiming to recover over $1 billion in purportedly misused funds.
In light of the ongoing bankruptcy proceedings and the quest to recover misappropriated funds, FTX.com has put forth a detailed restructuring plan. This includes the categorization of claimants, asset valuation, and the creation of recovery pools. More intriguingly, the plan indicates the possibility of a rebooted offshore exchange, signaling a potential fresh start for the embattled crypto exchange.
