FTX, the bankrupt crypto exchange, submitted a draft of a reorganization plan to the US bankruptcy court on Monday in order to pay back creditors. The plan stipulates that claims on the company’s FTT native token should be dropped because of its equity-like features. Other equitable interests have been deleted, and FTX intends to redeem other debtors and customers in cash. CEO John J. Ray III made a statement that the suggested system was created in order to receive feedback from creditors. The plan also confirms that Ray is considering to resume the operations of FTX with the aid of pro-investors through setting the exchange up as an offshore platform in a foreign area that won’t be available to the US citizens.
FTX collapsed in November due to fall of FTT which led to disruption of customer withdrawals. Bankman-Fried, the former FTX CEO, has faced criminal charges for supposedly cheating customers out of billions of dollars along with doing illegal political contributions and may be facing more than a century of prison if convictured. The Department of Justice (DOJ) released an official comment last week that it does not agree with Sam Bankman-Frid’s bail termsclaiming he has tampered with witnesses obstructing investigation.
