FTX Bankruptcy Claims Sell For 20 Cents
Distressed asset funds can pick up FTX bankruptcy claims for up to 20 cents on the dollar in private over-the-counter (OTC) markets, a person familiar with the matter told CoinDesk.
FTX filed for bankruptcy in November after its sister company Alameda Research was blown out of levered long positions during the market downswing. Sam Bankman Fried’s defunct exchange now owes its 50 largest creditors $3.1 billion.
There are public bankruptcy markets, and they’ve valuing distressed FTX assets at around $0.16 on the dollar, with individual claims of up to $27 million being sold on bankruptcy marketplace XClaim.
The private OTC markets are showing similar pricing, with distressed asset funds buying in the range of 15 to 20 cents on the dollar. The source added that the deals are mostly private as not all claims are fungible, and the “quality” of the claim is also considered in the sale value.
(With inputs from Shikha Singh)
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