FTX Exchange Prepares Bankruptcy Strategy to Resolve FTT Token Disputes
The bankrupt crypto exchange, FTX, has presented a draft reorganization plan to the courts in an effort to repay its creditors.
The plan aims to dismiss claims tied to the company’s native token, FTT. Citing its “equity-like characteristics.” Additionally, any other equity interests would be canceled. Other debtors and customers will be compensated in cash. The CEO, John J. Ray III, seeks creditor feedback and aims to achieve a consensual plan for emergence from bankruptcy in the third quarter of 2023. The plan also reveals intentions to potentially restart FTX operations as an offshore platform outside the US jurisdiction with the help of third-party investors.
Former CEO Sam Bankman-Fried faces numerous charges. Including alleged customer fraud and mishandling of funds, potentially leading to over 100 years in prison if convicted. The Department of Justice expressed dissatisfaction with Bankman-Fried’s current bail terms, citing concerns about tampering with witnesses and obstructing investigations.
Clever Robot News Desk 3rd August 2023