The defunct cryptocurrency exchange FTX has clarified that its restructuring plan does not involve the relaunch of the company. Instead, the focus is on repaying customers in full. In a hearing at the U.S. Bankruptcy Court for the District of Delaware on January 31, FTX attorney Andy Dietderich stated that the exchange is cautiously optimistic about fully repaying users and creditors. However, he emphasized that it is a goal, not a guarantee. Dietderich mentioned that, based on current efforts and forecasts, a disclosure statement outlining how customers with allowed claims and unsecured creditors will be paid in full is expected to be filed in February.
During the hearing, Dietderich ruled out any plans to restart FTX, known as FTX 2.0, under the current Chapter 11 bankruptcy. He stated that despite all efforts, no investors were willing to commit the capital required to restart the offshore exchange, and there were no buyers to keep the exchange a going concern. Dietderich highlighted concerns about FTX's poor financial and corporate record under former CEO Sam Bankman-Fried, who faces seven felony charges related to FTX and Alameda Research fraud. Bankman-Fried's sentencing hearing is scheduled for March 28.
In December 2023, FTX debtors proposed compensating claimants based on the price of crypto assets at the time of bankruptcy, with Bitcoin valued at $16,871 and Ethereum at $1,258. FTX creditors had suggested repaying cryptocurrency holdings "in kind," but Judge John Dorsey, in his January 31 ruling, sided with the debtors, stating that the law was "very clear" on the matter. Coinciding with this announcement, the price of the FTX token (FTT) experienced significant volatility, surging over 12% before settling back down.
