FTX's Claim Window Pricing Sparks Concern Amid Bankruptcy, Preps Stake Sale in AI Firm
Summary:
FTX's claim window shows a major disparity between the current market values and the assigned prices for top cryptocurrencies including BTC, ETH, SOL, and BNB. Responding to criticisms, PwC revealed that FTX Digital Markets Ltd. is in a Chapter 11 settlement with FTX Trading Ltd and related debtors. An official liquidator has requested creditors to lodge electronic claims by May 15, 2024, expecting first interim distribution by late 2024 or early 2025. Amid this, FTX warns about unauthorized third parties making bids for FTX Debtors and obtained approval to sell its stake in AI firm Anthropic.
A claim window established by FTX exhibits a significant pricing discrepancy with current market rates for a number of major cryptocurrencies, including Bitcoin (BTC), Ethereum, Solana (SOL) and BNB (BNB). The window prices BTC at $16,871, ETH at $1,258, SOL at $16.24 and BNB at $286, considerably reduced from their present market prices of $62,144 for BTC, $3,424.62 for ETH, $129.96 for SOL and $411.32 for BNB. Cryptocurrency asset holders affected by FTX's bankruptcy are expressing trepidation over this price disparity, questioning the authenticity and transparency of the platform. Concerns have been voiced on an X social network, with users demanding FTX be held accountable.
Responding to the criticism, PwC released an official statement on their website revealing that FTX Digital Markets Ltd. is undergoing a Chapter 11 settlement with FTX Trading Ltd and related debtors in an attempt to amalgamate both entities' properties. The official liquidator for FTX has requested all creditors to lodge their electronic claims by May 15, 2024 and the first interim pay-out via the PwC-managed claims portal is slated for late 2024 or early 2025. All eligible claims will be in United States dollars. Seeking to thwart unauthorised third parties intent on making bids on behalf of FTX Debtors, FTX released a statement warning about its authorised investment manager.
FTX, in its first-ever monthly communication to its stakeholders, used the X platform to inform creditors that the court-ordered sale of digital assets held by FTX Debtors will be managed solely by Galaxy Asset Management, the court-designated investment manager. Anyone interested in making buying requests or selling offers must go through Galaxy Asset Management, as per the guidance of the insolvent exchange. Transactions should particularly be carried out by institutional buyers and regulated entities.
FTX achieved approval on February 22 in a United States Bankruptcy Court hearing in the District of Delaware to sell over $1 billion worth of its stake in AI company, Anthropic. On a related note, our magazine is posing the question of whether cryptocurrency exchanges can be trusted following the collapse of FTX.
Published At
3/3/2024 11:25:08 AM
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