Reams of dockets from FTX.com have been filed alongside a proposed reorganization plan which could see FTX resurrected as an offshore exchange.
FTX.com has outlined its intended re-organization plan that will categorize claimants of the bankrupt exchange into specific classes and pave the way for the exchange to become re-operational as an offshore entity.
Dockets filed on July 31 include a draft plan of reorganization that outlines the company’s intended path to settle an “exceptionally large and complicated collection of claims”.
There are a total of 13 different classes of claims, including specific brackets for Dotcom customer entitlement claims, U.S. customer claims and nonfungible tokens (NFTs) customer claims.
Related: FTX reboot on the way: CEO holds talks with ‘interested parties’ — Report
The global settlement will involve the valuation of claims in U.S. dollars on a yet to be Bankruptcy Court-approved valuation methodology prepared by FTX, including disputes over assets held on FTX.com and FTX US exchanges.
FTX plans to identify three primary recovery pools that will correspond with segregated assets attributable to FTX.com customers, FTX US customers and assets that the company contends are not attributable to the two defunct exchange arms.
Users that held NFTs will also have their own seperate classification. NFTs are set to be returned to applicable customers unless they were "destroyed" or lost. In that scenario, their claims would shift to Class 4A or 4B as outlined in the screenshot above.
The document features recognition of special “shortfall” claims by the two FTX exchange organizations against this third pool of general assets. This is intended to “compensate” the exchanges for the unauthorized borrowing and misappropriation of assets that former CEO Sam Bankman-Fried and his close associates are accused of carrying out.
The filing also outlines the intent to cancel intercompany claims as well as the “extinguishment of FTT claims”. This specific clause intimates that holders of FTT will not be compensated at all for their token holdings. The value of FTT collapsing played a pivotal role in the collapse of FTX in 2023.
The final section of the proposed plan covers the intent to liquidate the estates of FTX to payout distributions to customers and creditors in cash. However a clause notes that customers may be offered voluntary elections in connection “with a restart of an offshore exchange”.
This would see provision for specific creditors to opt for a share of equity, tokens and other interests in a potentially rebooted offshore FTX exchange.
Under bankruptcy proceedings, FTX has sued Bankman-Fried and other implicated directors in an attempt to recover over $1 billion in alleged misappropriated funds. The July 20 complaint names Bankman-Fried as a defendant alongside former Alameda Research CEO Caroline Ellison, FTX co-founder Zixiao “Gary” Wang, former FTX engineering director Nishad Singh.
Magazine: ‘Elegant and ass-backward’: Jameson Lopp’s first impression of Bitcoin
You can get bonuses upto $100 FREE BONUS when you:
💰 Install these recommended apps:
💲 SocialGood - 100% Crypto Back on Everyday Shopping
💲 xPortal - The DeFi For The Next Billion
💲 CryptoTab Browser - Lightweight, fast, and ready to mine!
💰 Register on these recommended exchanges:
🟡 Binance🟡 Bitfinex🟡 Bitmart🟡 Bittrex🟡 Bitget
🟡 CoinEx🟡 Crypto.com🟡 Gate.io🟡 Huobi🟡 Kucoin.
Comments