David Edwards
A representative body of FTX customers expressed deep disappointment with the exchange’s proposed bankruptcy exit plan, stating that the restructuring team completely disregarded their input. According to a court filing on July 31, FTX’s Official Committee of Unsecured Creditors (UCC) revealed that despite their numerous requests and previous assurances, they were not granted any communication or discussions with FTX regarding their draft Chapter 11 plan.
The proposed plan aims to classify and address customer claims while setting a course for FTX to relaunch as an offshore exchange. However, the UCC issued a warning that if their concerns were not addressed, they would present their own alternative plan for FTX customers to vote on.
Another major concern raised by the Official Committee of Unsecured Creditors (UCC) is that the proposed plan lacks the appointment of an individual with relevant crypto expertise to lead a potentially-revived FTX.
In addition, the UCC emphasized the necessity of creating a regulatory-compliant recovery token and allocating value to those customers most severely impacted by FTX’s collapse. This move, they argued, is crucial to garner support from the “millions of customers and creditors whose votes are essential to confirm a plan.”
Furthermore, the UCC expressed apprehension about the current plan’s potential to incur more costs and delays. As a result, they firmly stated their intention to present their own alternative plan, one that customers and creditors can genuinely vote in favor of.
It was, however, appreciative that the restructuring team signaled a willingness to amend the plan to include the UCC’s recommendations, saying that negotiations will start “very soon.”
