Increasing Interest in FTX Customer Claims: Light at the End of the Tunnel?
There seems to be a growing interest in FTX customer claims, with some creditors now selling their claims for over 50 cents on the dollar.
The increase in the value of these claims appears to stem from recent efforts to recover assets from the bankrupt cryptocurrency exchange.
However, challenges still remain, such as Know Your Customer (KYC) and Anti-Money Laundering (AML) issues, which require further clarification.
Increased Value of Customer Claims
The market for FTX creditor claims seems to be heating up. According to specialist Thomas Braziel, a claim worth over $20 million was recently sold for 52 to 53 cents at an auction on October 20. However, he points out that only the strongest claims typically reach these amounts.
The market has really strengthened for smaller claims, ranging from $500,000 to $800,000. These claims are now trading between 30 and 40 cents.
Thomas Braziel
Past and Present Investments Supporting the Claims
In April 2022, Anthropic raised $580 million in a Series B funding round led by Sam Bankman-Fried, the former CEO of FTX who has since disappeared. More recently, Amazon announced a $4 billion investment in Anthropic, putting the potential valuation of the company at $30 billion. This values FTX’s investment in Anthropic between $3.5 billion and $4 billion.
According to a post from the FTX creditor coalition on October 4, this valuation could fully compensate FTX creditors.
Persistent Concerns
Despite this optimism, Braziel points out that some concerns still persist, particularly around KYC and AML issues.
“There is still a lot to be clarified,” admits Braziel.
He also mentioned that the recent settlement and support plan announced on October 18 by the ad hoc committee for non-U.S. customers of FTX is a significant victory for many companies looking to sell their claims on the market.
Since FTX filed for bankruptcy protection in November 2022, the company has made several strategic moves to recover lost assets. These efforts, combined with the positive evolution of the claims market, offer a glimmer of hope for a more stable future for customers and the market as a whole.
