Prices for FTX Group claims have seen a notable uptick following revelations that the bankrupt crypto exchange is considering proposals from three potential buyers for its inactive exchange.
FTX claims’ valuations now range between 50 and 53 cents on the dollar, an increase from last week’s low-to-mid 40 cents range.
Cherokee Acquisition, a firm specializing in brokering bankruptcy claims, has recently reported a surge in the value of FTX claims. According to Vladimir Jelisavcic, the company’s founder, these claims now range between 50 and 53 cents on the dollar. Notably, these claims were traded at a lower range last week, specifically in the mid-40 cent mark.
This development comes as news of FTX considering proposals from three potential buyers for its inactive exchange recently broke out. During court proceedings, FTX investment banker Kevin M. Cofsky disclosed that the company is engaged in ongoing discussions with various parties, exploring different options. These options include selling the exchange, partnering with another entity for relaunch, or pursuing an independent reboot.
FTX’s claim prices have steadily risen over the past year since the crypto empire’s descent into bankruptcy. During this period, advisors have worked tirelessly to recover billions of dollars in assets.
According to a report by Matrixport in September, the expected payout for creditor claims against FTX had surged to an average of 37 cents on the dollar. At the time, this represented the highest level since the bankruptcy filing in late 2022, a significant jump from slightly over 10 cents at the beginning of 2023.
Matrixport attributed this improvement to the successful efforts aimed at asset recovery and clawbacks. Under the leadership of John Ray III, a veteran Wall Street bankruptcy lawyer overseeing the exchange’s bankruptcy process, FTX has managed to marshal $7.3 billion in assets. This includes $3.4 billion in cryptocurrencies and $200 million in real estate in the Bahamas.
According to the report, clawbacks could increase creditor payouts in the ongoing case. Notable claims include those against Binance, valued at $2.1 billion, and investment firm K5, associated with Michael Kives, valued at $700 million.
Additionally, creditors have a substantial claim on FTX’s stake in AI startup Anthropic, valued at $500 million.
Matrixport concluded the report by stating that the potential for restarting the exchange represents a promising avenue for creditors, as evidenced by the recent surge in creditor claims driven by investor proposals.