HomeNewsGroundbreaking Turn in Crypto: FTX 2.0's Full Creditor Remuneration and FTT Token...

Groundbreaking Turn in Crypto: FTX 2.0’s Full Creditor Remuneration and FTT Token Disposal

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  • FTX 2.0, under a bankruptcy restructuring process, plans to settle creditor claims in cash while exterminating its native cryptocurrency, the FTT token.
  • The restructuring plan may include the rebooting of its offshore exchanges, suggesting the plan’s flexibility and potential for future amendments.

In a fresh development within the crypto ecosystem, FTX 2.0 Group has put forth an innovative proposal for handling claims from creditors as part of its bankruptcy restructuring. This audacious plan includes liquidating customer claims in cash while simultaneously eliminating its proprietary FTT token from existence.

A Detailed Look at the Restructuring

Given the plan’s preliminary stage, FTX 2.0 is preparing to adjust it based on stakeholders’ input. Thus, the strategy entails assessing customer claims in USD, calculated as of the bankruptcy date. Court documents indicate that this restructuring tactic involves FTX 2.0 compensating creditors through the sale of assets associated with various business segments. Interestingly, the documents reveal that the company is contemplating the resurrection of its offshore exchanges.

The procedure outlines three specific recovery pools to govern the repayment of creditors. These include assets owned by FTX.com customers, FTX US customers, and those not directly linked to the exchanges. FTX 2.0 categorizes most proposed creditor classes as impaired, suggesting they may not receive full compensation.

The Future of FTT Tokens

The revamping plan for FTX 2.0 entails zero recovery for FTT tokens, citing their resemblance to equity. It’s common practice for US bankruptcy reorganization plans to eliminate equity. John J. Ray III, the FTX Chief Restructuring Officer, shared his views on this matter, stating,

“We are pleased today to deliver on our commitment to file the Plan at this relatively early stage.”

He further stressed the company’s intention to cooperate with creditors in the forthcoming months and file a modified plan in the fourth quarter of the year. The proposal is still in its infancy, and further adjustments are anticipated. FTX 2.0’s plan suggests that seven creditor groups will have an opportunity to vote on the plan. These include FTX.com customers, FTX US customers, and holders of non-fungible tokens.

To add to the complexity, FTX 2.0 filed a lawsuit in July against its disgraced founder, Sam Bankman-Fried, and his team, seeking to recoup a substantial portion of their questionable transactions. The exchange accused the defendants of consistently misappropriating funds for personal luxuries and speculative investments, resulting in what the company described as

“one of the largest financial frauds in history.”

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AnnJoy Makena
AnnJoy Makenahttps://www.ethnews.com
Annjoy Makena is an accomplished and passionate writer who specializes in the fascinating world of cryptocurrencies. With a profound understanding of blockchain technology and its implications, she is dedicated to demystifying complex concepts and delivering valuable insights to her readers. Business Email: info@ethnews.com Phone: +49 160 92211628