FTX, the beleaguered cryptocurrency exchange, has filed a draft plan of reorganization. According to the proposal submitted on Monday, FTX aims to create a “rebooted” offshore exchange accessible only to non-U.S. users. The plan seeks to categorize claimants into distinct groups, with FTX.com offshore exchange users referred to as “dotcom customers,” while FTX US users are labeled “U.S. customers,” media reports said.
Under this proposal, each holder of a dotcom customer entitlement will be entitled to a pro-rata share of the proceeds from a pool of assets linked to the FTX.com exchange, after considering distributions to the dotcom customer convenience class and covering expenses.
The bankruptcy administrator has laid out two potential options for the dotcom customer pool. The first option entails establishing a fresh company in collaboration with third-party investors to operate the “rebooted” offshore platform, which will specifically exclude U.S. investors. Alternatively, a merger or similar transaction might be pursued.
The plan has an interesting twist, as it suggests that the Debtors may choose not to offer cash to the Dotcom Customer Pool. Instead, they might consider non-cash considerations such as equity securities, tokens, or other interests in the Offshore Exchange Company, or the right to invest in such assets.
The move by FTX signals its determination to tackle the challenges head-on and regain its standing in the cryptocurrency market. By segregating customers based on their geographical locations and proposing a new offshore platform, the exchange aims to regain trust and rebuild its operations in a controlled environment.
While the path to recovery remains uncertain, this reorganization plan provides a glimmer of hope for FTX and its users. If executed strategically, it could pave the way for the exchange to overcome its current hurdles and potentially emerge stronger in the long run. Nevertheless, the situation demands careful observation and analysis as the future of FTX continues to unfold.
