Bankrupt crypto exchange FTX has submitted a draft reorganization plan to the court to repay creditors.
The draft plan, filed Monday in a US bankruptcy court, calls for the elimination of claims based on possession of the disgraced company’s disgraced token, FTT.
The draft says that the FTT-based claims against the exchange should be dropped due to the “equity-like characteristics” of its native token. It also calls for the cancellation of any other equity interests.
FTX plans to refund other debtors and customers in cash. The company’s CEO, John J. Ray III, says in a press release that the submitted plan is intended to elicit feedback from creditors.
“Our goal is to come to a consensual plan and get out of bankruptcy. We are committed to closing these matters in the third quarter of 2023 and to file a revised plan and disclosure statement in the fourth quarter of 2023.”
FTX was first shut down in November after FTT collapsed and was forced to halt customer withdrawals.
Ray, who also oversaw the liquidation of the notorious US energy company Enron, took over from disgraced former CEO Sam Bankman-Fried after the stock market was declared bankrupt.
The recently submitted draft reorganization plan also confirmed rumors that Ray is considering restarting FTX’s business. The document says the company “may decide,” with the help of outside investors, to relaunch the exchange in a foreign jurisdiction as an offshore platform that is not available to US clients.
Bankman-Fried faces a slew of charges for allegedly defrauding customers and mishandling billions of dollars in their money, as well as making illegal political donations. If convicted, he could face more than 100 years in prison.
The Department of Justice (DOJ) also said in a lawsuit last week that it is unhappy with Bankman-Fried’s current bail conditions, accusing the disgraced crypto entrepreneur of witness tampering and obstructing investigations.
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