SNEAK PEEK

• FTX plans to create a new offshore trading platform for debt recovery.
• Former FTX.com clients can convert claims into stakes on the new platform.
• FTT holders are excluded from the recovery plan following SEC’s security designation.

According to an official filing on Monday, the bankrupt crypto exchange FTX has rolled out a blueprint for a possible comeback, signaling a resurrection for its international clientele. The drafted proposal outlines plans for creating a new offshore trading platform, provided the agreement gains approval from a specific category of its creditors. 

This reboot aims to offer these claimants, termed “dotcom customers,” an alternative avenue for recouping their losses. With third-party investors’ backing, they could bring the offshore FTX exchange back to life.

As reported, FTX’s plan entails organizing its debtors into distinct groups. These include customers of its main offshore exchange, U.S. users, NFT platform patrons, individuals with general unsecured claims, secured claims, and those subjected to penalties like taxes and fines. However, the payout priority, termed “waterfall priorities,” will vary across these claimant groups, with the specific order determined through stakeholder negotiations.

Moreover, it’s worth noting that this offshore initiative is open only to former FTX.com clients, excluding U.S. customers. Intriguingly, these clients are provided with the option to convert their claims into stakes in the new platform, which, besides cash, could come in the form of equity, tokens, or other interests.

Before you guys start aping FTT on the back of the FTX restart news – FTT will be getting nothing in the FTX restart plan.

Literally zero.

— wassielawyer （哇西律师） (@wassielawyer) August 1, 2023

Despite the optimism, not all FTX stakeholders are set to benefit from this revival. Notably, FTT holders were left out of this recovery plan. Significantly, the proposed document underscores that no holder of an FTT claim would receive any distribution, with all FTT claims slated to be canceled after the effective date. This follows the SEC’s recent designation of FTT as a security.

Regardless, the road to recovery is gaining traction, with FTT surging 7.27% and trading at $1.45, per Coinmarketcap data. Consequently, it remains to be seen how this proposed offshore reboot of FTX plays out and whether it can restore the confidence of its international user base.

• SEO Powered Content & PR Distribution. Get Amplified Today.
• PlatoData.Network Vertical Generative Ai. Empower Yourself. Access Here.
• PlatoAiStream. Web3 Intelligence. Knowledge Amplified. Access Here.
• PlatoESG. Automotive / EVs, Carbon, CleanTech, Energy, Environment, Solar, Waste Management. Access Here.
• BlockOffsets. Modernizing Environmental Offset Ownership. Access Here.
• Source: https://investorbites.com/ftx-eyes-a-resurgence-reveals-plans-to-restart-crypto-exchange-for-international-users/