FTX Bankruptcy: Ikigai Asset Management Sells 65M Dollars Claim

According to reports, certain FTX creditors managed to obtain up to 73 cents on the dollar by selling their claims before the commencement of any bankruptcy court proceedings.

Ecem EFE23/12/20231 Mins read394

Ftx Bankruptcy Ikigai Asset Management Sells 65M Dollars Claim

Crypto News- Ikigai Asset Management, the firm that brought to light the significant exposure of its hedge fund assets on FTX during its collapse, has officially announced the sale of its claim in the bankruptcy proceedings of FTX. Travis Kling, Ikigai’s Chief Investment Officer, revealed that the decision to sell the $65 million claim was spurred by an unexpectedly high offered price, although the exact amount remains undisclosed. Reports hint that creditors may stand to receive as much as 73 cents on the dollar, representing the highest price since FTX’s downfall in November 2022.

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FTX Bankruptcy: Ikigai Asset Management Sells 65M Dollars Claim

Kling clarified that the choice to divest from the claim was primarily influenced by the concept of opportunity cost—balancing the potential future increase in claim value against the immediate deployment of cash into alternative investments. The proceeds from the claim sale now empower investors to redeem from the fund, with the majority of the capital staying within the fund.

Ikigai Asset Management Sells 65M Dollars Claim in FTX Bankruptcy at High Price

Despite an initial interest in FTX 2.0, Kling expressed discontent with the sluggish progress and mismanagement of the process by FTX Debtors, leading Ikigai to part ways with the claim. More than a year after FTX’s bankruptcy filing, legal and brokerage entities are urging affected users to sell their claims for a speedier recovery of funds. Some retail investors favor receiving funds sooner to engage in the crypto market rather than awaiting potential compensation from FTX debtors, even if an early cash-out entails a potentially lower payout compared to waiting until the resolution of FTX’s bankruptcy case.

Various firms, including Cherokee Acquisition and Open Exchange (supported by Three Arrows Capital co-founders Su Zhu and Kyle Davies), actively extend cash offers for FTX claims. Notably, in June, the bankruptcy claims platform Found reported an FTX creditor using a claim as collateral for a loan in the decentralized finance (DeFi) protocol Arcade.

Sources:cointelegraph

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Ecem EFE

Since 2022, Ecem has been creating digital content, combining her passion for technology with writing. Continuing her education in the Mathematics department, Ecem focuses on producing in-depth content on areas such as blockchain, artificial intelligence, and cryptocurrency. She aims to simplify these topics and present them to a wide audience, sharing valuable insights into the crypto industry through her writing. With her innovative content, she strives to raise awareness in the digital world.