FTX Creditor Claims Valued at Over 50 Cents on the Dollar
Over-the-counter (OTC) transactions involving FTX creditor claims are now being valued at over 50 cents on the dollar, according to a report by The Block. This represents a significant increase from earlier valuations and was revealed by Thomas Braziel, a specialist in FTX debt claims at 117 Partners, following a recent claims auction. During the auction, an FTX claim of more than $20 million was sold for 52 cents on the dollar. This suggests that the market expects FTX creditors to recover approximately half of their money from the bankrupt exchange. However, it’s important to note that this valuation applies only to the “largest and cleanest claims.”
FTX Claims Prices Continue to Rise
In addition to the recent auction results, an article shared by Thomas Braziel on X indicates that prices for FTX claims have continued to rise since the exchange’s initial failure almost a year ago. As the asset recovery process progresses and illiquid components are sold off, such as venture portfolios and real estate holdings, the value of claims is expected to steadily increase above $0.40 per claim.
Challenges Remain for FTX Creditors
While the prices of FTX claims are on the rise, not everything is going smoothly for FTX creditors. Earlier this month, a court decision involving bankrupt crypto lender Genesis and FTX’s sister company Alameda Research sparked outrage among FTX creditors. They deemed the settlement as the “worst deal to date” for FTX creditors.
Hot Take: Positive Signs for FTX Creditors Despite Challenges
The valuation of over 50 cents on the dollar for FTX creditor claims in recent OTC transactions is a positive indication for FTX creditors. It suggests that they may recover approximately half of their investments from the bankrupt exchange. Additionally, the rising prices of FTX claims and the expectation of further increases in value provide further hope for creditors. However, challenges still remain, as demonstrated by the controversial court decision that disappointed FTX creditors. Overall, while there are obstacles to overcome, these recent developments offer some optimism and potential for better outcomes for FTX creditors.
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