The unexpected news raised some eyebrows yesterday in the crypto community as defunct crypto exchange FTX outlined a plan to potentially reignite its platform. However, this might only be viable for offshore customers, leaving onshore platform users out in the cold. While these strategies may seem rather ambitious, they’re not without precedent; presenting possibilities to allow a select class of claimants to revive the exchange in partnership with third parties.
FTX went on to divide its creditors into several different categories, with “dotcom customers”, those who were part of the now insolvent FTX.com offshore exchange, sitting at the top. They’re followed by U.S. customers, patrons of its NFT exchange, and then an array of secured and unsecured claims, with general claims from Alameda’s lenders or trading partners finding themselves in the mix too. Interestingly, the last in line for payouts appear to be those claims associated with penalties and taxes. The specific order these debts will be paid off will be devised following stakeholder negotiations.
The previously mentioned dotcom customers have the option to merge their assets, forming an “offshore exchange company”, effectively a rebooted platform that wouldn’t be accessible to U.S. users. Those willing to participate in this venture, it seems, can take their payout in the form of ‘equity securities, tokens or other interests’, offering an unusual alternative to the traditional cash payout.
Aiming to keep us on our toes, FTX has previously hinted at the possibility of just such a reboot. However, it’s not considered beneficial news for all, specifically not for FTT token holders. Under the proposed plan, these stakeholders stand to receive nothing. This has understandably raised concern as the FTT tokens were tagged as ‘security’ by the SEC in a complaint lodged against FTX co-founderGary Wang and former Alameda Research CEOCaroline Ellison last December.
For the FTT claim, the penalty is relatively stringent, “No Holder of an FTT Claim shall receive any Distributions on account of its FTT Claim. On and after the Effective Date, all FTT Claims shall be canceled, released, and extinguished”.
Despite this, FTT is currently faring well, up 10.5% and trading at $1.50 according to CoinDesk market data. This news has sparked contrasting opinions among the crypto community. Some are optimistic about the bounce-back potential FTX has showcased. At the same time, others are skeptical about the platform’s selective and somewhat discriminating revival.
Source: Coindesk
