FTX Announces Highly Anticipated Plans! Should FTT Token Be Bought? - COINTURK NEWS
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FTX Announces Highly Anticipated Plans! Should FTT Token Be Bought?

4:51 pm (62 days ago)
August 1, 2023

Investors motivated by speculative price movements are still showing interest in FTT Token. But is it a good time to buy? For the investors defrauded on the FTX exchange, the main focus is whether they will be able to recover their money. The current reserves, or rather the balances recovered from SBF’s hands, are not sufficient to pay off all the debt. However, there is a plan being worked on.

Will FTX Exchange Reopen?

There is a group of investors eagerly awaiting the reopening of FTX exchange despite the possibility of losing all their money for the second time. FTX recently announced its restructuring plan, which includes the reactivation of FTX as an offshore exchange among other things. Previous statements made by the bankruptcy committee chairman indicated that concrete steps would be taken in this regard by the end of 2023.

The current management, or rather the receivership, believes that reopening the exchange will benefit the victims. With volumes hitting a two-year low and people finding it difficult to trust the FTX exchange, this belief contains exaggerated optimism. Therefore, the speculative surges around FTT may not be sustainable in the long run.

Will FTX Victims Be Able to Recover Their Money?

FTX divides its customers into 13 different groups in its bankruptcy plan. FTX plans to establish three main recovery pools. These will be used to make refunds to FTX Global and FTX US customers. However, the problem here is that while the balances of FTX US customers will be preserved in a 1:1 ratio, those of global customers will not have the same chance. If the pools are separate, victims in the US region will receive full refunds while others may face significant deductions.

The file also includes the intention to cancel intercompany receivables as well as “elimination of FTT claims.” This special provision states that FTT holders will not have any form of compensation for their token assets. This is an important risk for investors who want to buy FTT Tokens.

The final section of the proposed plan includes the intention of liquidating FTX’s assets to make cash distributions to customers and creditors. However, one provision states that customers may be offered voluntary choices “in connection with the relaunch of an offshore exchange.” This means that if the exchange reopens, customers can receive their assets in cryptocurrency. However, this plan has not yet been approved by the court. Moreover, there are many steps to be taken for the exchange to reopen.

As part of the bankruptcy proceedings, FTX filed a lawsuit against Bankman-Fried and other relevant executives to recover more than $1 billion in allegedly misappropriated funds. The receivership currently holds roughly $8 billion in assets, and the balance to be paid, along with corporate claims, is even higher. Now, after the plan draft takes its final form and is submitted to the court, it will be expected to come into effect. The amount of the investors’ balances that will be refunded is still uncertain.

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