Vladislav Sopov
OPNX plays crucial role in claims for FTX collapse victims as debtors are close to reaching shortfall settlement
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When FTX went down last year, it took a lot of people’s money with it. Bankruptcy court is, for many investors, the best hope of getting something back. Now, months into the proceedings, some potentially good news has emerged.
OPNX: Role and action in FTX settlement
On Oct. 17, 2023, FTX announced that its Chapter 11 case is inching closer to a major milestone. Its debtors have finally reached a proposed settlement which, if approved by the bankruptcy court, would help eligible creditors settle customer preference exposure and see creditors receive a shortfall claim payout.
FTX’s Customer Shortfall Settlement is part of an amended plan of reorganization. It is an effort to resolve a customer property litigation dispute, which argued that rather than unsecured claimants ranking equally with general creditors, FTX.com and FTX US customers had property interests in specific assets.
The settlement solves the matter by giving customers an unsecured claim that has equitable priority to certain property taken from the exchange. It was struck following extensive discussions between FTX and its affiliated parties, the Unsecured Creditors Committee, the Ad Hoc Committee of Non-US Customers and class action plaintiffs.
The plan proposes that FTX divide all its assets into three pools: a general pool, a pool for FTX US customers and another for FTX.com customers. Then, customers of FTX.com and FTX US would benefit from a shortfall claim against assets in the general pool, the size of which corresponds to the estimated value of assets missing at their exchange.
While the Customer Shortfall Settlement is a win for FTX customers, it is still unclear when (and if) all debtors will be able to claim their funds. As such, more and more affected customers are looking for the opportunity to sell their bankruptcy claims on over-the-counter markets. Open Exchange (OPNX), a new-gen trading and tokenization service, allows even small customers to tokenize and operate their debts.
OPNX: Instruments and novelties
With OPNX, victims with various positions and backgrounds are able to seamlessly tokenize their bankruptcy claims and sell them to other investors, offering them a way out of an otherwise difficult situation. Open Exchange (OPNX) emerged as a go-to solution for claimants in early 2023. The exchange has seen consistent growth since then, and has begun garnering even more attention due to the recent positive news about settlement status.
The platform also offers the first few hundred claimants various bonuses and trading fee discounts on OPNX’s exchange that supports spot and futures trading of various pairs. The platform introduced its native exchange token, OX, which can be staked for periodic rewards in the OPNX Herd. Furthermore, OPNX has created a cross-collateral portfolio margin system, which allows traders to use multiple assets in their portfolio as collateral to trade futures. Key to this system is oUSD, the exchange’s on-platform credit currency.
FTX claims can be sold for oUSD on the exchange. Besides being used for trading, oUSD can be converted to U.S. Dollar Tether (USDT), or even staked for yields in oUSD vaults.
While bankruptcy proceedings can be a difficult process to navigate, it seems as if the crypto market is responding well to the progress being made. It’s uncertain when the bear market will come to an end, but moving past things such as the FTX fiasco is certainly a move in the right direction.
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Vladislav Sopov