- Cryptocurrency exchange FTX is reportedly preparing to restart its operations for global investors.
- This move is expected to provide a means for settling debts.
- The exchange has classified creditor groups and presented a plan for how payments will be made.
The article discusses the plans of cryptocurrency exchange FTX to restart its operations, which is expected to facilitate debt settlement. The exchange has categorized its creditors and outlined a payment plan.
FTX’s Restart Plans
FTX, a global cryptocurrency exchange, is reportedly planning to reboot its operations. The exchange has proposed to organize its creditors into different classes. FTX has paved the way for the exchange to be restarted with third-party investors.
Creditors’ Classification and Payment Plan
In the filing, creditors were divided into various groups. The first group consisted of creditors of the FTX.com offshore exchange, referred to as ‘dotcom customers’. Investors in the US exchange were next in line, followed by creditors of the NFT exchange, unsecured, secured, and capital-like creditors. The list of creditors also included organizations that lent to Alameda and commercial partners. It was noted that capital-like debts were taxes and penalties.
Payment Procedure
The application indicated that payments would be made in sequence. Accordingly, once payments to one group are completed, the remainder will be proportionally distributed to the next creditors. It was suggested that dotcom plaintiffs could prefer to pool their assets to form a restarted platform that is either an ‘offshore trading company’ or not located in the US.
Conclusion
FTX’s potential restarts have been mentioned before. Statements about FTX’s restart were included in the company CEO John Ray’s invoices in May.
