FTX’s revised reorganization plan addresses cryptocurrency claims valuation and transfers. FTX, a crypto derivatives exchange, recently filed a revised version of its reorganization plan with the U.S. Bankruptcy Court for the Southern District of Florida. The new plan proposes to decrease the exercise of the impaired cryptocurrency claims and limits cryptocurrency claimants to receive the realizable value of their holdings.
The Revised Plan includes solutions for two major issues for cryptocurrency claimants:
1. Valuation – The Revised Plan establishes a source for valuation of the different currencies held. FTX will be using third-party exchange data to value the impaired claims and will also consider public auction or bulk liquidation data to value the currencies held.
2. Transfers – The Revised Plan also makes provisions for the transfer of cryptocurrency and directs FTX to provide adequate tools/software to ensure the transfer of cryptocurrency to the appropriate parties.
Overall, the revised reorganization plan addresses the two major issues of valuing and transferring cryptocurrency held by FTX. The court is scheduled to review and approve the proposal at a hearing in December. However, investors in FTX’s cryptocurrency assets will have to wait until then to have their claims recognized and taken into consideration.