- FTX and affiliated creditors have unveiled a plan to reorganize the exchange and compensate affected investors.
- It involves dividing the company’s customers into different categories, some of which will receive more preferential treatment.
- The plan also calls for the complete liquidation of the FTT native token without any compensation payments.
Bankrupt cryptocurrency exchange FTX has unveiled a reorganization plan. Among other things, it involves the creation of a new offshore trading platform.
The plan divides all FTX Trading users into four groups:
- Dotcom customers. The main category of traders who used the services of the offshore exchange FTX.com;
- US customers. FTX US division users;
- NFT holders on the firm’s marketplace;
- general unsecured claims, including from creditors and clients of Alameda Research;
- secured liabilities;
- subordinate claims, including fines and penalties.
Compensation payments in these categories will be made in a “cascade” fashion. That is, each successive group will receive a pro rata portion of the remaining pool of funds.
The specific order of payments has not yet been determined. The exchange is expected to form it after negotiations with stakeholders.
The FTT token “due to its stock-like characteristic” will be destroyed. Holders will not receive any additional compensation.
Only one category of customers – FTX.com users – will be eligible for the exchange reorganization. However, the plan also includes the ability to replace cash compensation with a portion of equity securities, “tokens, other derivatives or rights to invest in them.”
The company emphasized that the proposed plan is still in development. Therefore, the categories, compensation terms and timing may vary significantly.
Despite the information about FTT’s liquidation, the token’s exchange rate has jumped more than 7% in the last 24 hours, according to CoinMarketCap:
FTT/USD chart
The first rumors of a possible FTX relaunch date back to late January 2023. In March, investment firm Jefferies was in talks to buy the exchange in order to reorganize it.
It wasn’t until May that the rumors were commented on by the company’s new management team. In late June, the exchange announced that it was entering into reorganization talks with the Creditors’ Committee.
At the end of June, the exchange announced that it was entering into reorganization talks with the Creditors’ Committee.