FTX has revealed its proposed restructuring plan to address the complex range of claims stemming from its bankruptcy. The plan aims to separate claims into distinct categories and facilitate the exchange's operation as an offshore entity.
The plan, filed on July 31, outlines a draft for resolving the "unusually large and complex set of claims." There are 13 categories of claims in total, including brackets for FTX.com customer rights, US customer claims, and non-fungible token (NFT) customer claims. The restructuring will involve assessing US dollar claims using FTX's valuation methodology, though it still needs approval from the bankruptcy court.
FTX intends to create three primary recovery pools for FTX.com clients, separate FTX US client assets, and assets not associated with either defunct exchange division. NFT holders will have a separate classification, with NFTs returned to relevant customers unless they're lost or "destroyed."
The plan acknowledges a "shortage" claim by two FTX exchange entities against another asset pool. This is aimed at compensating the exchange for alleged unauthorized borrowing and misappropriation of assets by former CEO Sam Bankman-Fried and associates.
Additionally, the plan indicates the intention to cancel intercompany claims and eliminate the FTT claim. This suggests that FTX token holders may not receive compensation for their holdings. The plan's final section covers liquidating the FTX estate to enable cash distributions to customers and creditors. Voluntary option related to the "restart of offshore exchanges" might provide specific creditors with the choice to share equity, tokens, and other interests in a potentially relaunched offshore FTX exchange.
FTX has filed lawsuits against Bankman-Fried and other implied directors as part of its efforts to recover more than $1 billion in allegedly misappropriated funds. The exchange's bankruptcy followed its value collapse in 2022.
