FTX, a centralised cryptocurrency exchange that filed for bankruptcy protection in the US in November 2022, has now tabled a draft bankruptcy plan. When still operating, the platform’s focus included futures, leveraged tokens and crypto pairs – including its own FTT token – options, and spot markets.
FTX tables draft bankruptcy plan for claim repayments
This draft proposal puts forth ways to honour customer claims as of the official FTX bankruptcy date. Court documents indicate the plan suggests the sale of assets attached to different aspects of the business to affect repayments. Restarting an offshore exchange is also not off the table.
The draft references three recovery pools for creditor repayments, namely assets tied to FTX.com and FTX US clients, as well as those with uncertain links to these exchanges. Practically speaking, almost every proposed creditor class is judged as impaired, and the group does not foresee a change in this regard.
As FTT tokens have equity-like traits, the organisation’s draft also called for no recovery to be granted for these. In most instances, when it comes to US bankruptcy reorganisations, equity is eliminated.
FTX Chief Restructuring Officer, John J. Ray III, emphasised that this plan is an early-stage draft and subject to change. It details seven creditor classes that can vote on it, which include the non-fungible token holders. In terms of the proposal, Ray stated it:
“ … provides an initial construct of global settlement and good-faith compromise of an exceptionally large and complicated collection of claims.”
