FTX Gears Up To Revive Its Bankrupt Crypto Exchange For Non-US Customers

Updated: 20 June 2024

Disclosure

Don’t invest unless prepared to lose all the money you invest. This is a high-risk investment, you shouldn’t expect to be protected if something goes wrong.

Join Our Telegram channel to stay up to date on breaking news coverage

FTX bankruptcy administrators announced a plan that may see the defunct exchange restart trading services for offshore customers.

The plan involves dividing creditors into different groups based on their claims and potentially relaunching the FTX platform with the help of external investors.

News of this strategic move sparked a spike in the FTT token of more than 10% before it pared some gains.

https://twitter.com/WhaleWire/status/1686223334080405504?s=20

FTX’s recent submission details the classification of creditors into several groups. The initial category consists of claimants linked to the offshore platform FTX.com, known as “dotcom customers.” Subsequently, the customers of the U.S. exchange are labelled “U.S. customers,” and those associated with the NFT exchange are arranged accordingly.

The claims can be broadly categorized as general unsecured, secured, and subordinated claims. The general claims encompass those from Alameda’s lenders or trading partners, while the subordinated claims pertain to taxes and fines arising from penalties.

The priority for the claims will be determined based on the “waterfall priorities,” where each class will receive a proportional payout from the remaining pool after the preceding class has been settled. The exact sequence of payouts will be determined through discussions with stakeholders.

FTX Will Not be Accessible in the US

Members belonging to the “Dotcom claimants” group, which consists of previous customers of FTX.com, have the opportunity to pool their assets and create an “offshore exchange company” that will not be accessible within the United States.

The creditors are exploring the possibility of a non-cash method for the Offshore Exchange Company to contribute to the Dotcom Customer Pool, which could include equity securities, tokens, or other forms of interest in the Offshore Exchange Company.

The proposal suggests that the Dotcom Customer Pool could receive rights to invest in these equity securities, tokens, or other interests, implying that the debtors may choose to have a stake in the new exchange rather than receive a cash payout.

Potential FTX reboots were hinted at earlier, with interim CEO John Ray III discussing an “FTX restart” or a “2.0 reboot” in May. In January, Ray had first mentioned the possibility of rebooting the struggling crypto exchange, and the efforts to revive it have been ongoing. The FTX team aims to restart the exchange by the second quarter of 2024.

Related Articles

Newest Meme Coin ICO - Wall Street Pepe

Rating