Crypto News- The price surge of FTX claims, leading up to the Jan. 25 estimation hearing, is causing a stir among creditors vying for favorable rulings. Anticipating a decision in favor of ‘in-kind’ repayments in cryptocurrency, FTX claims are currently trading at nearly 80 cents to the dollar, as reported by Cherokee Acquisition, a bankruptcy claims and liquidity provider.
FTX Estimation Hearing Spurs Price Rally, Company Claims
The Claims Market Twitter account, managed by the claims firm, notes a continuous increase in prices ahead of the crucial court hearing. FTX’s proposal to repay creditors based on cryptocurrency prices on the day of bankruptcy faces resistance from creditors pushing for ‘in-kind’ payments based solely on the number of lost tokens.
Data from Cherokee Acquisition and Claims Market reveals FTX claims exceeding $3 million experiencing an 80% surge. This heightened confidence, attributed to FTX’s success in AI investments, contrasts with November 2022’s 57% claim pricing.
FTX’s Climbing Claims and Creditor Standoff: Navigating the Path to Jan. 25 Estimation Hearing
The creditor landscape is dotted with over 100 objection letters globally, originating from countries like South Korea, the United States, Canada, and the United Kingdom. Retail FTX customers are rallying against the debtor’s motion to estimate claims, with one million creditors seeking redemption from the FTX fallout.
FTX, acknowledging a $3.1 billion debt to its top 50 creditors, faces a diverse creditor group with the largest owed $226 million. Simultaneously, the FTX estate, along with Alameda Research, liquidated two-thirds of its Grayscale Bitcoin Trust shares, generating a reported $600 million. The move occurred before the trust’s conversion into a spot ETF on Jan. 11, as disclosed in a Bloomberg report.