FTX’s Official Committee of Unsecured Creditors (UCC), representing the interests of FTX customers, has expressed extreme disappointment with the exchange’s draft bankruptcy exit plan. According to a court filing on July 31, the UCC claims that despite repeated requests and assurances, they were not given the opportunity to discuss the draft Chapter 11 plan with FTX’s restructuring team.
The plan, which aims to categorize customer claims into classes and pave the way for FTX to re-launch as an offshore exchange, has raised concerns for the UCC. They warn that if their suggestions continue to be ignored, they will present their own plan for FTX customers to vote on.
The UCC also takes issue with the late filing of the plan, which they believe creates the appearance of progress while ignoring their input. They emphasize the need for someone with relevant crypto experience to oversee a potential reboot of FTX.
Moreover, the UCC emphasizes the importance of creating a regulatory-compliant recovery token and allocating value to the customers most affected by FTX’s collapse. This, they argue, will gain support from the millions of customers and creditors whose votes are necessary to confirm a plan.
The UCC further claims that the current plan will lead to additional costs and delays. They assert that if their recommendations are not considered, they will have no choice but to present their own plan for customers and creditors to vote on.
Despite their disappointment, the UCC acknowledges the restructuring team’s willingness to amend the plan based on their recommendations. They hope negotiations will begin soon but stress the importance of FTX being receptive and open to input from those who truly understand the cryptocurrency markets.
The situation highlights the complexities of dealing with bankruptcies in the cryptocurrency space and the need for transparent and inclusive processes to protect the interests of all stakeholders involved.