Prices for claims on the bankrupt FTX Group have surged due to the impending return of funds to customers and creditors, boosted by the rally in digital assets. The current trade value for FTX claims ranges between 57 to 73 cents per dollar, varying with the size of the claims, data from Cherokee Acquisition, a bankruptcy claims broker, reveals. This uptick is a climb from late October figures of 50 to 53 cents.
The spike in claim prices followed an October 16 update from FTX’s bankruptcy managers. The update suggested that customers from FTX.com and FTX US might collectively receive “over 90% of distributable value worldwide” if an amended plan gets approval. This information shifted the claims from around 40 cents previously.
The timing and exact amounts creditors will receive remain uncertain, as per Bradley Max, a director at Cherokee.
FTX faced collapse in November last year, encountering financial trouble with nearly a $7 billion deficit. Founder Sam Bankman-Fried was implicated in a significant fraud case in November and is awaiting sentencing. Right after the bankruptcy, claim values for the exchange dropped as low as about 10 cents on the dollar, as per Claims Market data.
Several factors contributed to the rise in claim prices. FTX’s stake in Anthropic, an AI startup backed by investors such as Google and Amazon, and its significant holding of Solana tokens, which surged over 650% this year, played roles in this surge. Solana’s current value is more than double its price before FTX’s bankruptcy.
