FTX Floats Plan To Restart International Crypto Exchange
FTX filed court documents with debtors’ claims and proposed a plan for relaunching offshore cryptocurrency exchange operations with third-party investors. The filings categorized claimants into dotcom customers, US exchange customers, NFT exchange customers, and general, secured, and subordinated claims. General claims include Alameda’s lenders or trading partners, while subordinated claims include taxes and fines from penalties.
FTX administrators will pay claims based on “waterfall priorities,” with each class receiving a pro-rata payout from the pool after payouts to the preceding class are completed. Dotcom category claimants can pool their assets to create an “offshore exchange company” or a “rebooted” platform not available to US customers. The debtors must forgo their rights to receive cash in exchange for a share in the new exchange. The Offshore Exchange Company may remit non-cash consideration to the Dotcom Customer Pool in the form of equity securities, tokens, or other interests. However, the plans do not provide compensation to FTT token holders, as the US Securities and Exchange Commission (SEC) labeled the exchange token as an unregistered security.
(With inputs from Shikha Singh)
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