Rise in Value of FTX Claims as Potential Buyers Emerge
The value of FTX claims has recently seen a significant increase, with Cherokee Acquisition reporting that these claims now range between 50 and 53 cents on the dollar. This is a notable rise from last week’s range of mid-40 cents. The surge in value comes as FTX considers proposals from three potential buyers for its inactive exchange.
Exploring Options for the Inactive Exchange
During court proceedings, it was revealed that FTX is engaged in ongoing discussions with various parties to explore different options for its inactive exchange. These options include selling the exchange, partnering with another entity for relaunch, or pursuing an independent reboot.
Record Creditor Payouts in FTX Bankruptcy Case
FTX’s claim prices have been steadily increasing over the past year as efforts to recover assets have been successful. A report by Matrixport in September showed that creditor claims against FTX had reached an average payout of 37 cents on the dollar, the highest level since the bankruptcy filing. This represents a significant improvement from just over 10 cents at the beginning of 2023.
Under the leadership of John Ray III, FTX has managed to recover $7.3 billion in assets, including $3.4 billion in cryptocurrencies and $200 million in real estate. The report also highlighted the potential for clawbacks to further increase creditor payouts. Notable claims include those against Binance valued at $2.1 billion and investment firm K5 associated with Michael Kives valued at $700 million.
Potential Restart of Exchange Promising for Creditors
The recent surge in creditor claims driven by investor proposals indicates that restarting the exchange could be a promising avenue for creditors. The potential buyers and ongoing discussions provide hope for the future of FTX’s inactive exchange.
Hot Take: Increase in Value of FTX Claims Points to Potential Revival
The rise in value of FTX claims, coupled with the interest from potential buyers, suggests that there is a possibility of reviving the bankrupt crypto exchange. This is good news for creditors who have been patiently awaiting a resolution to the case. As efforts to recover assets and clawbacks continue, there is a growing optimism that the exchange could be relaunched or sold, leading to higher payouts for creditors. The recent increase in claim values is a positive sign and indicates that there is still hope for FTX’s future.
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