FTX proposes restarting its offshore exchange

The FTX bankruptcy administrator presented a plan to restart the offshore exchange with access for users outside the United States.

The company intends to separate “dot-com clients” from the rest. According to the document, they will receive “a proportional share of the revenues from the asset pool linked to FTX.com.”

The firm also plans to establish a separate organization to run the offshore exchange restart, which will not be accessible in the United States.

“Rather than distributing all cash, the offshore exchange company would transfer the remuneration to the dot-com clients pool in the form of equity securities, tokens or other assets,” the statement said.

FTT token holders’ claims will be cancelled or redeemed as of the effective date of the restart plan, and they will not be entitled to any further distributions.

In January, the current head of FTX, John Ray first disclosed that a special task force was examining the possibility of restarting the platform.

In April, during court hearings, lawyers from Sullivan & Cromwell allowed the restructuring of the exchange with a restart of operations rather than liquidation or sale. The presented timetable envisaged that the detailed plan would be filed in the third quarter.

That same period, the idea of reviving FTX advocated by former head of institutional sales Zayn Takett. In his view, the platform should restart offering all products that existed before the collapse, adding a market for tokenised claims.

In a March presentation, representatives of the exchange assessed the total shortfall of funds to cover customer and creditor claims at $8.7 billion, of which about $1.6 billion is in Bitcoin.

In June, the new FTX leadership returned $7 billion in liquid assets.