How to Vote on FTX — step by step guide tutorial

I realized there is no voting guide on FTX so I decided to make one so you are not getting screwed again by misclicking something.

This guide wants to be as impartial as possible and does not want to influence nor advise you in voting. Although I will underline some nuances using a third party AI tool (https://www.ftxclaims.com/)

Login in your FTX account and go Step 6 Voting

You will see:

- class 5A if your account is above 50’000$

- class 7A if your account is below 50’000$ (this is called convenience class)

Click on ‘Proceed to Kroll Voting’

In the new page you will see a table. Identify the line where it says either 5A or 7A according to what you see in the FTX portal and click on ‘Click here to submit your ballot for this Plan Class’

You will then see a bunch of items on the left, keep in mind that the ordering might not be the same but the content is. So I will focus on the actual content and the important choices, half of them are just complicated lawyers lingo.

Bahamas opt-in

You have a choice to make about where your claim will be handled: in the U.S. or in the Bahamas.

Options

• Bahamas Choice: Your claim is handled in the Bahamas, and you give up your U.S. claim.
• U.S. Choice: Your claim is handled in the U.S., and you give up your Bahamas claim.

Voting Amount and Stipulated Amount

Stipulated Amount

• Definition: The Stipulated Amount is the value you agree to for your claim, which will be used for voting, allowance, and distribution.
• Implications: If you agree to this amount, it will override any other amounts listed in your proof of claim or the debtor’s schedules.

Voting Amount

• Definition: The Voting Amount is the value used to determine your voting power on the plan.
• Implications: This amount is based on either your proof of claim or the debtor’s schedules, depending on whether your claim is disputed or not.

Actions to Take

• Review Both Amounts: Compare the Stipulated Amount and the Voting Amount.
• If you agree to the Stipulated Amount, check the box on your ballot and vote to accept the plan. This will make the Stipulated Amount the official value for all purposes. -> Agree to Stipulated Amount
• If you don’t agree with the Stipulated Amount, do not check the box. Your original Voting Amount will be used, but you might still face Customer Preference Actions. -> Disagree with Stipulated Amount:

Convenience Claim Election (Only if you are 5A. If you are 7A, skip to next section)

If you tick the box below you are REDUCING your claim amount to $50,000.

Vote on Plan

Here you are voting if you accept or reject the plan. I asked AI to summarize some of the pros and cons, however do your own diligence. I am not a lawyer nor this is advice. You can ask more questions with this tool https://www.ftxclaims.com/

Pros of Voting to Reject the Plan:

• Potential for Better Terms: If enough creditors reject the plan, it might lead to renegotiations and potentially better terms.
• Retain Legal Rights: You keep the right to pursue additional claims against the debtor or third parties.

Cons of Voting to Reject the Plan:

• Delays: Rejecting the plan can delay the resolution process and the distribution of assets.

Pros of Voting to Accept the Plan:

• Faster Resolution: Accepting the plan can lead to a quicker resolution and distribution of assets.
• Certainty: You agree to the terms and conditions, which means you know what to expect in terms of payment.

Cons of Voting to Accept the Plan:

• Limited Recovery: You might receive less than you believe you are owed, especially if your claim is reduced or capped.
• No Further Claims: Accepting the plan usually means you cannot pursue additional claims against the debtor or related parties.

Third-Party Release

Imagine you have a toy that broke, and you want to decide whether to let someone off the hook for breaking it. Here’s what the message is saying:

1. Third-Party Release: This is like saying, “I forgive you for breaking my toy, and I won’t ask for a new one or any other toys in the future.”
2. Opt-Out: If you don’t want to forgive them, you need to say so by checking a box. If you don’t check the box, it’s like saying, “I forgive you.”
3. Releasing Party: If you don’t check the box, you’re considered someone who forgives (a “Releasing Party”).
4. No Impact on Recovery: Whether you forgive them or not, you’ll still get the same amount of toys (money) from the plan.

Examples of Not Releasing Third Parties:

1. Case 1: In some bankruptcy cases, creditors who didn’t release third parties were able to sue them separately and got more money than they would have from the bankruptcy plan alone.
2. Case 2: In other cases, creditors who opted out of releases were able to negotiate better settlements because the third parties wanted to avoid lawsuits.

Examples of Higher Recoveries:

In re Purdue Pharma L.P.:

• Context: Creditors who opted out of third-party releases were able to pursue additional claims against the Sackler family, leading to higher recoveries.
• Outcome: The threat of litigation led to a larger settlement fund for creditors.

In re PG&E Corporation:

• Context: Some creditors opted out of third-party releases and pursued separate claims related to wildfire damages.
• Outcome: These creditors were able to negotiate better settlements due to the potential for additional litigation.

Ballot Completion Information

In this last section add your Full Name & Surname, Email and Signature. If all is done properly you will get a message and a confermation email.