FTX Proposes "Rebooted" Offshore Exchange Plan

FTX has submitted a draft reorganization plan, suggesting the creation of a revamped offshore platform for non-U.S. users.

FTX recently filed a draft reorganization plan, presenting a proposal for the establishment of a rejuvenated offshore exchange, accessible only to non-U.S. users, following its bankruptcy.

The plan aims to categorize claimants into distinct groups, distinguishing "dotcom customers" who utilized FTX.com offshore exchange and "U.S. customers" who were part of FTX US.

According to the draft plan, dotcom customers will receive a proportionate share of the proceeds from a pool of assets linked to FTX.com.

This share will be calculated after settling expenses and providing for the dotcom customer convenience class.

The bankruptcy administrator's proposal for the dotcom customer pool involves the creation of a new company in partnership with third-party investors, which will operate the "rebooted" offshore platform, exclusively accessible to non-U.S. investors.

An alternative option includes considering a merger or similar arrangement; the Debtors might explore options beyond an all-cash distribution.

The Offshore Exchange Company could provide non-cash considerations, such as equity securities, tokens, or other interests, or even rights to invest in such assets, to the Dotcom Customer Pool.

According to the draft plan, however, FTT holders' claims will be nullified and extinguished as of the Effective Date, with no distribution for them.

Moreover, claims from non-customers, encompassing regulatory penalties and taxes, will be subordinated, as outlined in the filing.