FTX.com has outlined its intended re-organization plan that will categorize claimants of the bankrupt exchange into specific classes and pave the way for the exchange to become re-operational as an offshore entity.
Dockets filed on July 31 include a draft plan of reorganization that outlines the company’s intended path to settle an “exceptionally large and complicated collection of claims”.
There are a total of 13 different classes of claims, including specific brackets for Dotcom customer entitlement claims, U.S. customer claims and nonfungible tokens (NFTs) customer claims.
The global settlement will involve the valuation of claims in U.S. dollars on a yet to be Bankruptcy Court-approved valuation methodology prepared by FTX, including disputes over assets held on FTX.com and FTX US exchanges.
FTX plans to identify three primary recovery pools that will correspond with segregated assets attributable to FTX.com customers, FTX US customers and assets that the company contends are not attributable to the two defunct exchange arms.
Users that held NFTs will also have their own seperate classification. NFTs are set to be returned to applicable customers unless they were “destroyed” or lost. In that scenario, their claims would shift to Class 4A or 4B as outlined in the screenshot above.
The document features recognition of special “shortfall” claims by the two FTX exchange organizations against this third pool of general assets. This is intended to “compensate” the exchanges for the unauthorized borrowing and misappropriation of assets that former CEO Sam Bankman-Fried and his close associates are accused of carrying out.
The filing also outlines the intent to cancel intercompany claims as well as the “extinguishment of FTT claims”. This specific clause intimates that holders of FTT will not be compensated at all for their token holdings. The value of FTT collapsing played a pivotal role in the collapse of FTX in 2023.
The final section of the proposed plan covers the intent to liquidate the estates of FTX to payout distributions to customers and creditors in cash. However a clause notes that customers may be offered voluntary elections in connection “with a restart of an offshore exchange”.
This would see provision for specific creditors to opt for a share of equity, tokens and other interests in a potentially rebooted offshore FTX exchange.
Under bankruptcy proceedings, FTX has sued Bankman-Fried and other implicated directors in an attempt to recover over $1 billion in alleged misappropriated funds. The July 20 complaint names Bankman-Fried as a defendant alongside former Alameda Research CEO Caroline Ellison, FTX co-founder Zixiao “Gary” Wang, former FTX engineering director Nishad Singh.
Canterbury MP Rosie Duffield has resigned from the Labour Party.
The 53-year-old MP is the first to jump ship since the general election and in her resignation letter criticised the prime minister for accepting thousands of pounds worth of gifts.
She told Sir Keir Starmer the reason for leaving now is “the programme of policies you seem determined to stick to”, despite their unpopularity with the electorate and MPs.
In her letter she accused the prime minister and his top team of “sleaze, nepotism and apparent avarice” which are “off the scale”.
“I’m so ashamed of what you and your inner circle have done to tarnish and humiliate our once proud party,” she said.
Since December 2019, the prime minister received £107,145 in gifts, benefits, and hospitality – a specific category in parliament’s register of MPs’ interests.
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Ms Duffield, who has previously clashed with the prime minister on gender issues, attacked the government for pursuing “cruel and unnecessary” policies as she resigned the Labour whip.
She criticised the decision to keep the two-child benefit cap and means-test the winter fuel payment, and accused the prime minister of “hypocrisy” over his acceptance of free gifts from donors.
“Since the change of government in July, the revelations of hypocrisy have been staggering and increasingly outrageous,” she said.
“I cannot put into words how angry I and my colleagues are at your total lack of understanding about how you have made us all appear.”
Ms Duffield also mentioned the recent “treatment of Diane Abbott”, who said she thought she had been barred from standing by Labour ahead of the general election, before Sir Keir said she would be allowed to defend her Hackney North and Stoke Newington seat for the party.
Her relationship with the Labour leadership has long been strained and her decision to quit the party comes after seven other Labour MPs were suspended for rebelling by voting for a motion calling for the two-child benefit cap to be abolished.
“Someone with far-above-average wealth choosing to keep the Conservatives’ two-child limit to benefit payments which entrenches children in poverty, while inexplicably accepting expensive personal gifts of designer suits and glasses costing more than most of those people can grasp – this is entirely undeserving of holding the title of Labour prime minister,” she said.
Ms Duffield said she will continue to represent her constituents as an independent MP, “guided by my core Labour values”.