FTX files court filings to revive the offshore crypto exchange. Learn about claimants and compensation. Follow this crucial development!
Yesterday (Monday), FTX submitted a number of court documents detailing the creditors’ claims as well as a proposal for one class of claimants to restart the offshore crypto exchange activities with outside investors.
FTX claimants
The claimants of the defunct exchanges have been divided into several groups according to court filings: “dotcom customers” of the offshore exchange FTX.com; customers of the FTX US exchange; customers of the non-fungible token (NFT) exchange; and other general unsecured, secured, and subordinated claims. Alameda’s lenders or business partners are included in general claims, whereas taxes and fines from penalties were kept under subordinated claims.
The claims will be handled by FTX administrators according to “waterfall priorities,” which means that each class of claimants will receive a pro-rata compensation from the pool following the completion of payouts to the previous class of claimants.
The Offshore Exchange reopening
FTX’s “dotcom” category claimants have the choice of pooling their resources to form a “offshore exchange company” or using the “rebooted” platform, which is closed to US clients. Debtors are required to give up their claim to cash in exchange for a stake in the new exchange.
In the court document, it was stated that the Debtors could decide to have the Offshore Exchange Company send the Dotcom Customer Pool non-cash consideration 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 interests.
The plans, however, do not offer FTT token owners any remuneration. The exchange token has been classified as an unregistered security by the US Securities and Exchange Commission (SEC).
The suggestion to revive FTX was not unexpected. According to earlier media reports, interim CEO John Ray III has started conversations and suggested the concept of a relaunch.
In a recent statement, Ray said, “We are glad today to deliver on our commitment to file the Plan at this very early stage—before the expiration of the customer bar dates, the conclusion of our outstanding investigations, and the development of a disclosure statement.
