Insolvent FTX Plans Relaunch With New Debtor’s Payout Structure
FTX Relaunch
Summary: Insolvent FTX will split creditors into classes and allow one class to rebuild the exchange with outside investors. Former FTX.com consumers may finance an offshore exchange firm or “rebooted” platform. Interim CEO John Ray III filed billings in May, that included a “FTX restart” or a “2.0 reboot,” both of which might be seen as references to a future relaunch of FTX.
Key Takeaways:
- FTX will divide its creditors into several classes of claimants.
- The exchange will create a mechanism for one class of claimants to relaunch the exchange with outside investors.
- Borrowers may choose to forego a monetary settlement in favor of equity in the new exchange.
Insolvent crypto exchange FTX will divide its creditors into several “classes of claimants” and create a mechanism for one class of claimants to relaunch the FTX exchange with outside investors.
Categorizing Claimants
Yesterday, a file was uploaded that categorizes the claims. Claimants of the FTX.com offshore exchange (referred to as “dotcom customers”) come first, followed by claimants of the U.S. exchange (“U.S. customers”), and so on. Claims from Alameda’s lenders or trade partners go under general claims, whereas claims such as taxes and penalties fall under subordinate claims.
Furthermore, claims will be paid out in order of “waterfall priorities,” with each class receiving a proportional share of the remaining pool after the previous class has been compensated. Also, discussions with interested parties lead to an agreed-upon payment schedule.
Former FTX.com customers who fall under the “Dotcom claimants” umbrella have the option of banding together to fund the development of an “offshore exchange company” or “rebooted” platform that is unavailable in the United States.
The document read:
“Rather than all cash, the Debtors may determine that the Offshore Exchange Company remit non-cash consideration to the Dotcom Customer Pool 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 other interests.”
Moreover, it implies that the borrowers may choose to forego a monetary settlement in favor of equity in the new exchange. In May, interim CEO John Ray III submitted billings that included an “FTX restart” or a “2.0 reboot,” hinting at the possibility of a future relaunch of FTX.
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