24/7 Cryptocurrency News

FTX 2.0 Plans Complete Cash Payment to Creditors, Wipeout FTT Token

The court paper notes FTX 2.0 repaying the creditors by selling assets linked to different silos of the business, rebooting plan possible.
Published by
FTX 2.0 Plans Complete Cash Payment to Creditors, Wipeout FTT Token

In the latest development, the FTX 2.0 Group has unveiled a draft-creditor repayment plan as part of its bankruptcy restructuring process. The newly revamped exchange is planning for settling customer claims in cash while wiping out its native cryptocurrency FTT token.

FTX 2.0 is planning to amend this plan based on feedback from stakeholders. Thus, it proposes valuing customer claims in USD as of the date of bankruptcy. As per the court papers, the restructuring plan involves FTX 2.0 repaying the creditors by attaching assets tied to different verticals of the business. Furthermore, the filing shows that FTX 2.0 still hasn’t ruled out the rebooting of its offshore exchanges.

Three recovery pools will be used to guide creditor repayments. These pools include assets from FTX.com customers, FTX US customers, and assets not directly connected to the exchanges. The company considers most proposed creditor classes impaired, indicating that it does not expect to fully compensate them.

FTX 2.0 Suggests No Recovery of FTT Tokens

The restructuring plan for FTX 2.0 calls for no recovery of the FTT tokens citing their “equity-like characteristics”. The US bankruptcy reorganization plan usually wipes out the equity component. Commenting on the development, FTX Chief Restructuring Officer John J. Ray III said:

“We are pleased today to deliver on our commitment to file the Plan at this relatively early stage. The company intends to collaborate with creditors in the coming months and file an amended plan in the fourth quarter of this year”.

FTX has mentioned that the plan is still in the early stages and further modification is possible. The proposal also suggests that 7 groups of creditors will have a chance to vote on the plan, including FTX.com customers, FTX US customers, and non-fungible token holders.

Last month in July, FTX 2.0 sued disgraced founder Sam Bankman-Fried and his team to recoup a large part of their questionable transactions. The exchange alleged that the defendants consistently misused funds for luxury condos, political contributions, speculative investments, and personal projects, leading to what the company referred to as “one of the largest financial frauds in history.”

Share
Bhushan Akolkar

Bhushan is a seasoned crypto writer with over eight years of experience spanning more than 10,000 contributions across multiple platforms like CoinGape, CoinSpeaker, Bitcoinist, Crypto News Flash, and others. Being a Fintech enthusiast, he loves reporting across Crypto, Blockchain, DeFi, Global Macros with a keen understanding in financial markets. 

He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills. Bhushan has a bachelors degree in electronics engineering, however, his interest in finance and economics drives him to crypto and blockchain.

Published by
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Recent Posts

  • 24/7 Cryptocurrency News

World Liberty Financial Discloses Reason for Blacklisting 272 Wallets

World Liberty Financial (WLFI) has confirmed that it blacklisted 272 wallets and explained why it…

September 6, 2025
  • 24/7 Cryptocurrency News

September 50 BPS Fed Rate Cut Odds Climb Ahead of CPI, PPI Data

Traders are beginning to price in the possibility of a 50 basis points (bps) Fed…

September 6, 2025
  • 24/7 Cryptocurrency News

Michael Saylor Spotlights Strategy’s Performance Following S&P 500 Snub

Michael Saylor highlighted Strategy’s outperformance after the company was excluded from the S&P 500. The…

September 6, 2025
  • 24/7 Cryptocurrency News

Donald Trump Shortlists Hassett, Warsh, and Waller for Fed Chair

U.S. President Donald Trump has revealed his shortlist of candidates who could potentially replace Fed…

September 6, 2025
  • 24/7 Cryptocurrency News

Ethena Labs Secures Fresh Funding From ArkStream Capital, ENA Price Spikes

Ethena Labs has secured fresh funding from ArkStream Capital as it expands its ecosystem in…

September 6, 2025
  • 24/7 Cryptocurrency News

SEC Forms International Task Force to Crack Down on Pump-and-Dump Schemes

The U.S. Securities and Exchange Commission has launched a task force designed to tackle cross-border…

September 6, 2025