FTX Bankruptcy Claims Surge in Value: Bids Now Approach 93 Cents on the Dollar

  • 0 views
  • Added
  • By

Half a year ago, firms specializing in acquiring troubled companies and their debts were actively accumulating FTX bankruptcy claims worth millions, offering $0.33 for every dollar of claim. Presently, the valuation of these claims has significantly appreciated, with buyers now prepared to offer $0.93 on the dollar for each claim.

FTX-20240326.JPG

FTX Bankruptcy Claims Now Worth 93% of Original Value

In September 2023, a Bloomberg report highlighted the influx of substantial investments into bankruptcy claims markets, particularly focusing on claims linked to the defunct FTX. Reportedly, firms such as Diameter Capital Partners, Attestor Capital, and Silver Point Capital acquired FTX claims as 2023 began.

FTX Bankruptcy Claims Surge in Value: Bids Now Approach 93 Cents on the Dollar

In January 2023, these claims were valued at $0.145 per dollar bid, which by September had appreciated to $0.33 per dollar per claim. Currently, Cherokee Acquisition, which operates Claims Market, reports bids for these claims have climbed to $0.93 on the dollar.

Notable transactions include a $2.34 million claim sold on March 22 and a $3.6 million claim exchanged on March 19. The FTX bankruptcy docket, documenting transfers and levying a $28 fee to various acquisition firms, includes some transfers with redacted names.

Transfers of claims began shortly after the bankruptcy proceedings were in full swing, with many creditors accepting much lower than $0.93 on the dollar initially. By Feb. 1, claimants were parting with their claims for $0.75 on the dollar.

Although not as preferable as crypto payments in-kind that some FTX creditors still desire, receiving 93% of their claim’s value promptly and distancing themselves from the FTX debacle entirely proves beneficial for others. Throughout the entire process, corporate giants specializing in debt acquisition have shown keen interest in securing these divested claims.

What do you think about FTX claims rising in value? Let us know what you think about this subject in the comments section below.

Source: news.bitcoin.com.

Rating

Unrated