FTX Creditor Claims Valued at Over $0.50 in OTC Trades
According to Thomas Braziel, a specialist in FTX debt claims, some over-the-counter (OTC) trades of FTX creditor claims are valuing the claims at over $0.50. When you buy a claim, you become entitled to whatever the FTX bankruptcy estate is able to recover. A price of over $0.50 indicates that the market expects about half of users’ assets to be recovered.
Braziel mentioned that a claim worth over $20 million was sold for around 52¢ on the dollar at auction on Friday. However, only the “largest and cleanest claims” can expect to fetch such a high price.
Positive Outlook on FTX Claims
The value of FTX claims has been increasing due to recent large investments made by Anthropic, an AI company in which FTX had a significant stake. Creditors are hopeful that selling the Anthropic stake will help recover funds, potentially leading to a full recovery.
In January of this year, a majority of respondents in an X poll expected only a 25% recovery on their claims. However, since then, the FTX Debtors’ estate, led by CEO John Ray III, has been making efforts to claw back funds and liquidate assets from the estate.
Ongoing Trial and Future Proceedings
The criminal trial of Sam Bankman-Fried is currently ongoing, although the court is currently on break. The trial is scheduled to resume this Thursday.
Hot Take: Optimism Surrounding FTX Creditor Claims
The valuation of FTX creditor claims at over $0.50 in OTC trades suggests growing optimism among creditors. With recent investments by Anthropic and efforts by the FTX Debtors’ estate to recover funds, there is hope for a substantial recovery. However, it’s important to note that only the largest and cleanest claims are likely to fetch such high prices. The ongoing trial of Sam Bankman-Fried also adds an element of uncertainty to the situation. Overall, creditors are cautiously optimistic about the potential returns from their FTX claims.
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