{"id":62255,"date":"2023-10-23T02:50:19","date_gmt":"2023-10-23T06:50:19","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=62255"},"modified":"2023-10-23T02:50:42","modified_gmt":"2023-10-23T06:50:42","slug":"ftx-creditor-claims-break-50c-as-buyers-made-whole","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/ftx-creditor-claims-break-50c-as-buyers-made-whole\/","title":{"rendered":"FTX Creditor Claims Break 50c as Buyers Made Whole"},"content":{"rendered":"\n

The market is warming up to FTX claims, with a single claim fetching between 52 and 53 cents on the dollar at Friday's auction.<\/p>\n\n\n\n

\"FTX<\/figure>\n\n\n\n

According to Thomas Braziel, partner at 117 Partners\r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a>, a firm specializing in crypto bankruptcy claims, the market for FTX creditor claims has been heating up, with some claims purportedly selling for more than 50 cents on the dollar.<\/p>\n\n\n\n

Braziel told Cointelegraph that a claim worth more than $20 million recently sold at auction on October 20 for between 52 cents and 53 cents, though he noted that typically only the finest claims reach this price, adding:<\/p>\n\n\n\n

\n

“The market has really firmed up for smaller claims, with smaller claims being north of $500K to $800K and up.”<\/p>\n<\/blockquote>\n\n\n\n

“Those claims are now trading between the high-end of 30 cents and the lower end of 40 cents,” he added, reiterating that only the “cleanest” claims with the right buyer could sell at these prices.<\/p>\n\n\n\n

The increased value of creditor claims appears to result from recent clawback efforts by the bankrupt crypto exchange and capital-raising efforts by a company in which the exchange had previously invested.<\/p>\n\n\n\n

Sam Bankman-Fried, the former CEO of the now-defunct FTX, led Anthropic's series B funding round in April 2022, raising $580 million.<\/p>\n\n\n\n

Amazon announced a $4 billion investment in Anthropic<\/a> on September 25. Anthropic seeks to raise capital at a prospective valuation of $30 billion, valuing FTX's investment in the company between $3.5 and $4 billion.<\/p>\n\n\n\n

According to a post from the FTX creditor coalition on October 4, this valuation may be sufficient to make FTX creditors whole.<\/p>\n\n\n\n

\nhttps:\/\/twitter.com\/AFTXcreditor\/status\/1709345555971707368\n<\/div><\/figure>\n\n\n\n

Braziel added that despite the growing enthusiasm for FTX claims, concerns still needed to be resolved, but overall, the rising value of claims was a positive sign for creditors.<\/p>\n\n\n\n

\n

“There's still a lot to iron out. KYC and AML issues are still popping up.”<\/p>\n<\/blockquote>\n\n\n\n

Braziel stated that the Settlement and Plan Support announced on October 18 by the Ad Hoc Committee of non-U.S. FTX customers was a significant victory for several companies attempting to sell their claims on the market.<\/p>\n\n\n\n

A crucial component of the amended support plan is the “shortfall claim,” in which FTX debtors estimate that FTX.com and FTX US customers would collectively receive 90% of distributable assets. <\/p>\n\n\n\n

The estimated shortfall claim for FTX.com is $8.9 billion, and for FTX.US, it is $166 million.<\/p>\n\n\n\n

“They were kinda stuck with a bag they really couldn't sell because it was really unclear how customer clawbacks were going be treated,” said Braziel. <\/p>\n\n\n\n

“For all the trading and market-making firms, the planned support agreement and the draft outline are really helpful for trading firms to be able to sell their claims.”<\/p>\n\n\n\n

Since FTX initially filed for Chapter 11 bankruptcy protection<\/a> on November 11, 2022, the FTX Debtors' estate, led by new CEO John Ray III, has taken a number of steps to recover lost assets, including the sale of FTX holdings and significant clawbacks from other crypto firms and former-FTX seigniorage.<\/p>\n","protected":false},"excerpt":{"rendered":"

The market is warming up to FTX claims, with a single claim fetching between 52 and 53 cents on the dollar at Friday’s auction. According to Thomas Braziel, partner at 117 Partners , a firm specializing in crypto bankruptcy claims, the market for FTX creditor claims has been heating up, with some claims purportedly selling […]<\/p>\n","protected":false},"author":56,"featured_media":62297,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21,26],"tags":[5668,3996,10893,414,376,778,1502,11872],"class_list":["post-62255","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","category-cryptocurrencies","tag-business-2","tag-ai","tag-bankruptcy","tag-court","tag-cryptocurrencies","tag-ftx","tag-regulation","tag-sam-bankman-fried-2"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2023\/10\/QHUGTFL36NK4VCGQZMZ65B6YZ4-scaled.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/62255","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/56"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=62255"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/62255\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/62297"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=62255"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=62255"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=62255"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}