FTX Unveils Plan for Cryptocurrency Exchange Revival and Debt Settlement
FTX, a cryptocurrency exchange, has filed a court-approved plan to exit bankruptcy, detailing asset values from its November 2022 filing. The restructuring aims for fair distribution among creditors, with a 2024 vote, as FTX explores investor partnerships to revive its operations
The cryptocurrency exchange FTX has presented a court-approved reorganization plan aimed at concluding the bankruptcy process. According to the proposed plan, the valuation of assets to satisfy creditors' claims will be determined based on prices at the time of the bankruptcy filing in November 2022. The exchange's management cited the previous failure of the company as being linked to its control by a limited group of individuals who inefficiently managed the business, making false statements about their responsibility.
Under the new plan, legally presented in the Delaware court, the value of creditors' claims will be determined based on the asset prices at the time of the bankruptcy filing. Representatives of the exchange stated that the goal of this plan is the maximum and efficient distribution of value among all creditors.
On November 11, 2022, the price of Bitcoin was approximately $17,500, while the native FTX token, FTT, was valued at $3.5. As of December 18, 2023, the FTT price fluctuates around $3.2. It is planned that in 2024, creditors will vote on the proposed plan by the management, after which Judge John Dorsi will review the document to make a final decision. In late October, it became known that FTX managers were in talks with three investors regarding the restoration of the exchange, considering options such as selling the company and client base or bringing in a partner to restore operations.