The bankrupt cryptocurrency exchange FTX submitted a revised reorganization application to the court on the 26th of last month, hoping to estimate the amount of customers' crypto asset claims based on the US dollar, seeking to estimate the value of the assets on November 11, 2022, the date of bankruptcy. A claim assessment hearing will be held on the 25th.
As the claims assessment hearing is approaching, the price of FTX debt has increased. Cherokee Acquisition, a distressed asset investment company that specializes in bankruptcy claims and provides liquidity for FTX debt, revealed that the trading price of FTX debt has reached almost US$0.8 per dollar.
According to Cointelegraph , the price of FTX claims will rise because creditors are optimistic that the court’s ruling at the hearing will be beneficial to their claim to receive compensation in cryptocurrency “physical objects”. Their goal is to establish a “physical object” The repayment structure is based on the number of tokens rather than the market price.
In November last year, due to the rising valuation of Anthropic, an AI startup that had been invested by FTX founder SBF, the trading price of FTX debt rose to 57%. Now, according to data from Cherokee Acquisition and its debt trading platform Claims Market, more than 300 The trading price of FTX debt worth US$10,000 has surged to 80%.
The rise in debt prices indicates that creditors are more confident in receiving large repayments. In comparison, the debt prices of other bankrupt cryptocurrency companies, including Alameda Research, Genesis Global and Three Arrows Capital, have also risen sharply to 45 respectively. %, 67% and 32%.
Over 100 letters oppose FTX compensation proposal
At the same time, FTX creditor Sunil Kavuri pointed out that there have been as many as 153 letters of objection from creditors around the world against FTX’s restructuring application, including FTX retail companies from South Korea, Hong Kong, Singapore, the United States, Canada, the United Kingdom, Germany and other places. client.
If FTX's original proposal was followed, on the bankruptcy date, BTC was quoted at US$16,871, ETH was reported at US$1,258, SOL was reported at US$16, and AVAX was reported at US$14, which were all significantly different from the current prices. This led Sunil Kavuri to publicly express last month Dissatisfied, the creditors must stand up and resist.
Extended reading: FTX compensation announcement sparks anger! It will be calculated based on the price of BTC 16,871 mg, ETH 1258 mg, and SOL 16 mg.
According to the court's previous public documents , FTX estimates that it has more than 1 million creditors. FTX owes the top 50 creditors as much as $3.1 billion and owes the largest creditor $226 million.
