FTX Debtors under chief restructuring officer John J. Ray III criticized traders and market makers among the Official Committee of Unsecured Creditors (UCC) for seeking control over assets. FTX debtors call the UCC’s plan to invest nearly $2.6 billion in cash reserves in short-term Treasuries a bad idea amid FTX 2.0 draft restructuring plan.
FTX Hits Back At Creditors For Seeking Control Over Assets
According to a filing in the court on August 9, FTX responded to a statement by the UCC in response to the draft plan of reorganization and term sheet. FTX blasted the UCC for seeking control over debtors’ assets after it called on debtors to invest nearly $2.6 billion cash reserves in short-term Treasuries to offset professional fees of up to $330 million.
Disputes arise between the UCC and debtors as creditors allege a lack of consultation and FTX losing most funds amid the bankruptcy filing. However, SEC is frustrated about lack of involvement and unprofessional conduct from many members of the UCC.
FTX’s reorganization team has recovered about $7 billion in liquid assets from $8.7 billion the exchange owed customers when it filed for bankruptcy.
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Some creditors and experts responded to the latest filing by the FTX, arguing that debtors are delaying the restructuring and rejecting statements from UCC.
FTX 2.0 Launch
Debtors revealed a plan for FTX 2.0 relaunch, with FTX CEO John Ray seeking the completion of all settlements and pending wages to launch FTX 2.0. Kraken CEO Jesse Powell believes FTX 2.0 is “worse than starting from scratch,” pointing to the absence of a team, technology, and licenses, as well as a tarnished brand.
Meanwhile, FTX filed a motion to dismiss the Chapter 11 bankruptcy case of FTX Exchange FZE (FTX Dubai), claiming that the exchange never started offering crypto-related services to investors.
