A new draft plan was unveiled by FTX Trading Ltd, which is aimed at ‘rebooting’ the now-defunct crypto exchange under the leadership of its new chief executive, John J. Ray III.
Disclosed on Monday, the proposal in question offers claimants of FTX.com the opportunity to hold tokens, equity securities, or other interests in the offshore firm that has been newly formed.
The draft plan
The strategy of the debtors about creating distinct groups for the claimants has been outlined in the draft plan.
The users of the FTX US exchange will be referred to as ‘US customers, while those who used the FTX.com exchange will be categorized as ‘Dotcom customers’.
To put it simply, the draft plan suggests that three main recovery pools be created, which will be the General Pool, the US Customer Pool, and the Dotcom Customer Pool.
The said pools will include all digital assets, fiat as well as any other assets that are associated with FTX US and FTX.com.
According to a proposal put forward by the bankruptcy administrator, a new company should be created for customers who belong to the Dotcom pool.
Third-party investors would be involved in the formation of this company and it will run a ‘rebooted’ offshore exchange that will not be accessible by US investors.
Proceeds obtained from a pool of assets connected to the FTX exchange will be used for providing a pro-rata share to Dotcom customers after expenses are deducted.
The consequences
One important thing to note in the filing is that nothing will be given to holders of the FTT token, which was the native token of the FTX crypto exchange.
It dictates that there will not be any distribution to FTT holders and their claims will be canceled. The plan also suggests the subordination of claims from non-customers like those for taxes and regulatory penalties.
There is no doubt that the issues relating to the bankrupt crypto exchange are very complex and the draft plan has been developed as a novel approach to address them.
Consulting Parties, along with other stakeholders, can give feedback on the said draft plan, which will then be amended.
FTX 2.0
It was back in January that the new FTX CEO had first floated the idea of relaunching the crypto exchange.
Ray had said that they were working with stakeholders who believed that there could be a viable business.
Andy Dietderich, the lead attorney of FTX, also hinted in April that the crypto exchange could be revived, but they did not have a set path outlined at that time.
In May, a court filing revealed that the new CEO had been actively looking into the idea of restarting the exchange and had even finalized materials to be shared with investors.
On Tuesday, there was a 7% gain recorded in the price of the FTT token due to the recent news about the exchange’s revival, which saw it reach $1.52.
According to CoinGecko, the token had declined once more to $1.45 at publishing time.