FTX’s creditor will speak out as the bankruptcy process moves forward
The market for FTX creditors' claims is heating up, with some claims now reportedly selling for more than 50 cents on the dollar, said Thomas Braziel, partner at 117 Partners – a firm specializing in crypto bankruptcy claims.
Brazil told Cointelegraph that claims worth more than $20 million were recently sold at an auction on October 20 between 52 cents and 53 cents.
“The market is very tight for small claims, small claims are $500K to $800K and up.
“These claims are now sold between the highest of 30 cents and the lowest of 40 cents,” he said, repeating that only “clean” claims with the right buyer can be sold at these prices.
The increase in creditor claims appears to follow recent efforts from the bankrupt crypto exchange, as well as efforts to raise capital from a company it previously invested in.
In the year In April 2022, Anthroponic raised $580 million in a Series B led by former FTX CEO Sam Bankman-Fried.
On September 25, Amazon announced a $4 billion investment in Anthropics. Anthroponic is looking to raise capital at a valuation of $30 billion, valuing FTX's investment in the company at between $3.5 billion and $4 billion.
According to a post from the FTX Lenders Coalition on October 4th, this review may be enough to see FTX Lenders fully operational.
Anthroponic to raise value from Google by 20-30B, putting FTX's stake at 3-4.5B.
FTX clients should now be fully compliant. pic.twitter.com/Vy9mZc8bEl
— FTX 2.0 Alliance (@AFTXCreditor) October 3, 2023
RELATED: Sam Bankman-Fried trial moves into final stages
Despite the growing appetite for FTX claims, Brazil added that there are still some concerns that need to be addressed, but overall the rising claims value is a good sign for lenders.
“There is still a lot to do to extract iron. KYC and AML issues are still pending.
Brazil said the settlement and plan support announced on October 18 by the Ad Hoc Committee of Non-US FTX Clients was a big win for many firms looking to sell their claims on the market.
A critical component of the revised support plan is a “short failure claim” under which FTX.com and FTX US customers are expected to receive 90% of distributable assets. The shortfall claims are estimated at $8.9 billion for FTX.com and $166 million for FTX.US.
“They were stuck with bags that they couldn't really sell because it wasn't clear how the customer churn was going to be handled,” Brazil said. “For all commercial and market-making organizations, the proposed grant agreement and draft are helpful for businesses to sell their claims.”
FTX first filed for Chapter 11 bankruptcy protection in 2011. Since the November 11, 2022 filing, FTX Debtors Asset has made a series of moves to recover lost assets, including the sale of FTX holdings under new CEO John Ray III. Claveback from other crypto firms and ex-FTX seigniorage.
Magazine: Blockchain Investigators – Matt Gox's failure saw the birth of Chinalysis
