FTX proposes plan to reboot defunct crypto exchange for international customers

TL;DR Breakdown

  • FTX has outlined a potential route for one particular class of claimants to relaunch the FTX platform.
  • The exchange plans to restart the crypto exchange for international customers; hence, it won’t be accessible in the U.S.
  • FTX’ 2.0 reboot’ has been in the works since May 2023.

Description

FTX, the now-discontinued cryptocurrency exchange, has released its plan to categorize its creditors into distinct groups based on their claims. Additionally, the exchange has outlined a potential route for one particular class of claimants to relaunch the FTX platform, involving external investors, subject to the consent of the concerned group. FTX  to restart trading for … Read more

FTX, the now-discontinued cryptocurrency exchange, has released its plan to categorize its creditors into distinct groups based on their claims. Additionally, the exchange has outlined a potential route for one particular class of claimants to relaunch the FTX platform, involving external investors, subject to the consent of the concerned group.

FTX  to restart trading for international customers

The latest filing has detailed the division of claimants into multiple categories. The initial group comprises claimants associated with the offshore exchange FTX.com, called “dotcom customers.” Following that are the customers of the U.S. exchange, identified as “U.S. customers.” Subsequently, the customers of its NFT exchange are categorized, along with general unsecured, secured, and subordinated claims. The general claims include those from Alameda’s lenders or trading partners, whereas the subordinated claims pertain to taxes and fines arising from penalties.

The claims’ priority will be established based on the “waterfall priorities,” each class will receive a proportional payout from the remaining pool after the preceding class’ has been settled. There will then be a series of discussions with stakeholders to determine the exact sequence of payouts. As for the members in the “Dotcom claimants” group, which includes past customers of FTX.com, they have the option to combine their assets to establish either an “offshore exchange company” not accessible in the U.S.

The Debtors can consider a non-cash approach for the Offshore Exchange Company’s remittance to the Dotcom Customer Pool instead of providing solely cash. This non-cash consideration may be equity securities, tokens, or other interests in the Offshore Exchange Company. The document also proposes that the Dotcom Customer Pool may receive rights to invest in such equity securities, tokens, or other interests. The document reads that the debtors might opt for a stake in the new exchange rather than a cash payout.

FTX ‘2.0 reboot’ has been in the works

Potential FTX reboots have already been hinted at, as seen by interim CEO John Ray III’s fillings from May, where he talked of an “FTX restart” or a “2.0 reboot.” In a court filing on May 22, the FTX team presented a compensation report outlining the efforts made by Ray during the Chapter 11 bankruptcy proceedings, highlighting his work to safeguard the debtor’s interests. However, the mention of a possible reboot of FTX drew significant interest from the crypto community.

In January, Ray first discussed rebooting the struggling crypto exchange. During that period, news reports indicated that the bankrupt exchange had identified $5.5 billion in liquid assets, and the new CEO was collaborating with creditors to devise a revival strategy. Subsequently, in April, the exchange managed to recover $7.3 billion in assets. As a result, the FTX team has set a target to restart the exchange by the second quarter of 2024.

Meanwhile, the FTX case is still in progress, with the latest being that the federal prosecutors have filed a motion to revoke the $250 million bond granted to Sam Bankman-Fried. While he was out on pretrial release, they said that the creator of the now-defunct FTX exchange made new attempts to obstruct government witnesses. According to a 12-page letter submitted to Judge Lewis Kaplan, prosecutors claim that Bankman-Fried leaked personal and sensitive diary entries written by his ex-girlfriend and former Alameda Research CEO, Caroline Ellison, to The New York Times. The alleged purpose of this action was to portray a crucial cooperator testifying against him in a negative and incriminating manner.

In response, Bankman-Fried’s defense lawyer, Mark Cohen, rejected the accusations of witness tampering during a court appearance, asserting that Bankman-Fried was exercising his First Amendment rights by communicating with the media. Cohen has since stated that his team requires additional time to address the government’s “hyperbolic assertions” and to present the facts concerning Bankman-Fried’s communications. Further, he intends to file a formal opposition brief before Judge Kaplan decides whether to revoke Bankman-Fried’s bail.

Disclaimer: The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

文章来源于互联网:FTX proposes plan to reboot defunct crypto exchange for international customers

Disclaimers:

1. You are solely responsible for your investment decisions and this info is not liable for any losses you may incur.

2. The copyright of this article belongs to the writer, it represents the writer's opinions only, not represents the site's ones. Not financial advice.

Previous 2023年8月1日 14:00
Next 2023年8月1日 16:52

Related articles

  • San Francisco criticizes Elon Musk’s giant X logo

    TL;DR Breakdown Elon Musk installed a giant glowing ‘X’ logo at X’s San Francisco headquarters. Local residents complained about the intrusive lights; city officials are investigating. The logo was part of Musk’s rebranding of Twitter to X but has caused controversy. Description San Francisco is hardly pleased with the latest demonstration of branding by Elon Musk, the ever-controversial billionaire and mastermind behind SpaceX, Tesla, and now, the messaging platform X – formerly Twitter. The city’s discontent comes after a colossal, glowing ‘X’ was mounted on the roof of the company’s Market Street headquarters. This glaring symbol of … Read more San Francisco is hardly pleased with the latest demonstration of branding by Elon Musk, the ever-controversial billionaire and mastermind behind SpaceX, Tesla, and now, the messaging platform X – formerly Twitter. The city’s discontent comes after a colossal, glowing ‘X’ was mounted on the roof of the company’s Market Street headquarters. This glaring symbol of corporate ambition has not only irked local residents but drawn the attention of city officials who are now investigating its compliance with local regulations. Let’s…

    Article 2023年7月31日
  • Crypto influencers exercise caution in wake of FTX lawsuit

    TL;DR Breakdown Crypto influencers are now prioritizing user protection following legal scrutiny. Firms are now liaising with influencers to change the method of collaboration. Since the collapse of the crypto exchange FTX last year, crypto influencers have adopted a more cautious approach to endorsement deals, given the legal repercussions faced by several celebrities allegedly involved in its promotion. An ensuing $1 billion class-action lawsuit accused eight influencers of promoting “FTX crypto fraud without disclosing compensation.” This incident has served as a wake-up call for influencers, reminding them that endorsing crypto firms may expose them to legal action if the company’s actions turn unfavorable. Crypto influencers now prioritize consumer protection In light of these concerns, popular crypto vlogger Tiffany Fong has refrained from endorsing crypto firms on her social media channels. Having gained fame by interviewing former FTX CEO Sam Bankman-Fried after the collapse, Fong is currently uninterested in promoting anything that could potentially harm customers. She has received numerous offers but has chosen not to respond, believing that the risks outweigh the rewards. DeFi Dad, a Twitter influencer with 152,300…

    Article 2023年6月10日
  • Silvergate CEO’s mysterious exit amid fraud allegations

    TL;DR Breakdown Silvergate Capital, the parent company of Silvergate Bank, is undergoing significant changes as CEO Alan Lane and two other top executives prepare to step down from their positions.  Alan Lane and John Bonino, the chief legal officer, will be leaving their roles on August 15th, while Antonio Martino, the chief financial officer, is set to depart on September 30th. The company and Alan Lane are facing several proposed lawsuits, many of which center around the Company’s alleged involvement in the misconduct of the cryptocurrency exchange FTX. Description Silvergate Capital, the parent company of Silvergate Bank, is undergoing significant changes as CEO Alan Lane and two other top executives prepare to step down from their positions. This comes as part of the company’s plan to wind down operations and voluntarily liquidate Silvergate Bank, which was once known for its crypto-friendly stance. Alan Lane … Read more Silvergate Capital, the parent company of Silvergate Bank, is undergoing significant changes as CEO Alan Lane and two other top executives prepare to step down from their positions. This comes as part of…

    Article 2023年8月16日
  • Tether’s grip on crypto market eroded by harsh competition

    TL;DR Breakdown Tether’s dominance in the cryptocurrency market is waning. Tether’s market cap dropped by 1.2% in August but still remains three times larger than its nearest competitor. The overall stablecoin market has been contracting for 17 consecutive months. Regulatory challenges and reduced DeFi activity contribute to the decline. Description Tether’s once undisputed dominance in the cryptocurrency landscape is being tested. The stablecoin giant, which has long been the cornerstone of the digital-asset market, is seeing its influence wane as challengers step up their game and the industry grapples with regulatory scrutiny and waning investor interest. Tether’s Luster Dims in Stablecoin Wars In the rapidly-evolving … Read more Tether’s once undisputed dominance in the cryptocurrency landscape is being tested. The stablecoin giant, which has long been the cornerstone of the digital-asset market, is seeing its influence wane as challengers step up their game and the industry grapples with regulatory scrutiny and waning investor interest. Tether’s Luster Dims in Stablecoin Wars In the rapidly-evolving world of cryptocurrencies, a decrease in Tether’s market capitalization is a glaring indicator of its diminishing power….

    Article 2023年9月4日
  • Congressman Ritchie Torres asks SEC to stop its assault on crypto

    TL;DR Breakdown Congressman Ritchie Torres has urged the SEC to review its strict approach toward cryptocurrencies. Torres criticized the SEC’s use of the Howey Test and suggested digital assets could be part of securities contracts. He also highlighted the SEC’s lack of clear communication with the industry, stressing the current regulatory uncertainty. Description US Congressman Ritchie Torres has written a scathing letter to the SEC Chair, Gary Gensler, urging SEC to stop its assault on cryptocurrencies. In the aftermath of a decisive lawsuit loss against Ripple Labs, wherein the court ruled XRP was not a security, Torres questioned the SEC’s continued, harsh scrutiny of digital assets in one … Read more US Congressman Ritchie Torres has written a scathing letter to the SEC Chair, Gary Gensler, urging SEC to stop its assault on cryptocurrencies. In the aftermath of a decisive lawsuit loss against Ripple Labs, wherein the court ruled XRP was not a security, Torres questioned the SEC’s continued, harsh scrutiny of digital assets in one of his recent letters.  The Bronx representative criticized the SEC’s usage of the Howey…

    Article 2023年7月19日
TOP