Surprise action by FTX creditors

Creditors of the now defunct cryptocurrency exchange, FTX, are seemingly deliberating on revamping the website and bringing in third-party investors. The idea is to compartmentalize the various groups of petitioners and follow it up with regulated disbursement of assets.

The initial segment going by the name of dotcom customers includes the FTX.com distant exchange petitioners. This will be followed by a group having US-based customers and then FTX’s NFT exchange customers. What will remain will be the unsecured petitioners, as well as the secured ones, along with the appropriate taxes and other penalties.

The idea stems from waterfall priorities, where every class comes in for a pro-rata dividend obtained from the balance asset pool once the preceding class is agreeable. The plan is to ensure total transparency in the disbursal method.

Dotcom customers will have the option of collecting their assets and creating an offshore exchange company or a reorganized platform that will be accessible to investors outside the US. Rather than accumulating cash payments, debtors suggest non-money payments, such as securities, tokens, or some other types. 

The entire game plan is the handiwork of the interim CEO, John Ray, who proposed a rebooting of the FTX. The plan is slowly beginning to gain movement, with the creditors exhibiting their interest. 

In the case of the owners of FTT, which is FTX’s conventional token, they will not be a part of this deal. The SEC had considered FTT to be a security when it had filed charges against the Co-Founder of FTX, Gary Wang, and the ex-CEO of Alameda Research, Caroline Ellison. Therefore the owners of FTT will not be accommodated in the disbursement scheme, and their petitions will be considered null and void. The value of FTT has gone up by 10.5%, and the trading of stock presently stands at $1.50. Sure enough, the camp of experts and analysts seems to be divided on the whole issue, and all concerned to remain on a wait and watch mode.