Committee officials announced that despite repeated appeals and calls to the FTX Group’s external administration, they have been unable to achieve a joint discussion on proposals for a draft bankruptcy exit plan. According to the UCC, the FTX restructuring plan is still in its infancy, but the exchange team is ignoring the Committee’s best efforts to reach a consensus.
The UCC disagreed that the future exit plan divides customer claims by class and involves re-launching the crypto platform as an offshore exchange. In addition, UCC believes the plan creates an “appearance of progress” and does not include the appointment of an executive with experience in crypto assets. Additional UCC claims relate to plans for an external administration of FTX to create a “foreign exchange company” and a new trust company called FTX Ventures Trust.
The unsecured creditors’ committee has warned that the existing plan would increase costs unnecessarily, and UCC reserves the right to put its own
proposals if its views continue to be ignored.
UCC officials have previously expressed
bewilderment that FTX’s new CEO and chief debt restructuring officer, John Ray, was paid $690,000 by the bankrupt cryptocurrency exchange in two partial months on the job.