FTX claims climb to 57% as Sam Bankman-Fried found guilty on all counts
The current claim pricing of FTX has reached a maximum of 57%, according to data from Claims Market. The increase in FTX’s claim pricing is attributed to the valuation of the Artificial intelligence (AI) companies that the now-bankrupt crypto exchange previously invested in.
Creditors stake their claims to try to recoup some of their investment when businesses experience financial difficulties or bankruptcy. Based on their estimates of the total amount recovered, investors frequently trade these claims. There is an increase in the estimated recovery value when the pricing of a claim rises.
As the value of FTX investment in these AI companies jumped, so did the potential amount that could be recovered from its bankruptcy procedure. A claim is a legal assertion of a certain monetary amount.
The claim percentage value here refers to the amount of expected recovery from the platform. FTX claims value jumped highest when compared to other bankrupt crypto firms such as Celsius with about 35-40%, Genesis with about 50%, Alameda at 10%, and Three Arrows Capital (3AC) with only 7% to 9%.
Related: ‘Fuck regulators,’ said SBF behind closed doors: Report
The surge in FTX claims also comes amid former FTX CEO Sam BankFried’s public trial ending on Nov. 2 as the jury found the tainted CEO guilty on all seven charges. The judge in the case will announce sentencing in the case in March 2024.
The FTX claims have been a major topic of discussion among the crypto community throughout the bankruptcy proceedings. Earlier, the judge in the case had allowed FTX to sell nearly $3.4 billion worth of crypto assets in the market to compensate creditors. With the rising price of cryptocurrencies and increasing valuation of companies that FTX invested in, the creditors stand a healthy chance of returning a significant chunk of their lost money from FTX.
Magazine: BitCulture: Fine art on Solana, AI music, podcast + book reviews
Source: Read Full Article