Key Takeaways
- FTX lawyers proposed a reopening plan as a part of the bankruptcy proceedings.
- The exchange would operate offshore, and the proposal divides claimants into categories.
- FTT coin is pumping, but not for long.
YEREVAN (CoinChapter.com) — The infamously imploded FTX exchange, which evaporated $9 billion of creditor money in November 2022, will reopen as a part of the bankruptcy proceedings. The re-booted exchange would only be available to offshore customers and NOT be accessible in the United States.
FTX lawyers proposed a reopening plan
The proposal contains plans for reorganizing creditors into different categories. It provided a pathway for one class of claimants, so-called “dot-com customers,” or the claimants of FTX.com offshore exchange, to reopen FTX with third-party investors if the said group agrees to it.
The next category in line is customers of the US. exchange, referred to in the case filing as “U.S. customers.” After come the customers of FTX’s NFT exchange, then general unsecured claims, secured claims, and subordinated claims.
The latter include fines and taxes from penalties, and the general claims include those from Alameda’s lenders or trading partners.
Sidenote: Alameda Research is the FTX’s sister company that held $5 billion in the exchange’s native FTT coin. The reports raised several questions about the potentially dangerous leverage positions held by Sam-Bankman Fried, the founder and former CEO of FTX.
Notably, the “dot-com customers” expected FTX to reopen since the bankruptcy lawyers claimed they recovered over $5 billion of investor money in Jan 2023. However, following negotiations with stakeholders, the lawyer team proposed a “priority” system to satisfy the claims.
The seniority of the claims will be determined according to the “waterfall” principle. Each class would get a proportionate payout from the remnants of the pool after the preceding class.
Meanwhile, several complications remain in the FTX exchange restarting. For example, the role of Alameda Research going forward is still unclear. What is FTT’s new tokenomics? Regardless of the answer to the latter question, FTT crypto rallied when the announcement was released.
FTT coin price peaked after a 25% surge
FTT token price reached $1.7 in the Asian-Pacific session on August 1, after a 25% daily surge induced by the FTX exchange restarting. However, the FTT crypto news couldn’t sustain the rally for long, and the token lost altitude hours later, settling at $1.45 in the European session.
Notably, the FTT coin price is unlikely to pull off another surge in the US hours, considering its inaccessibility to regional customers. Moreover, the latest FTT news is not at its core optimistic, and the reopening of the exchange is carried out only to repay investor debt. The lawyer team will oversee the entire process, and FTX coin might not see another surge in the coming week.
