FTX Seeks to Nullify Claims for 'Sam Coins' in Bankruptcy Case, Investors Contend Value
Summary:
FTX, a cryptocurrency exchange involved in a bankruptcy case, is attempting to reject investors' claims for 'Sam Coins', arguing their worthlessness. Claims tied to FTX's incarcerated founder's digital tokens such as Maps (MAPS), Oxygen (OXY), Serum (SERUM), and Boba (BOBA) should be severely discounted or nullified, according to FTX attorneys. However, FTX customers holding the 'Sam Coins' argue that these tokens cumulatively exceed $1.1 billion in value. The court is set to decide on the final valuation of these disputed digital assets.
FTX, a controversial cryptocurrency exchange, is seeking to dismiss investors' claims related to the so-called 'Sam Coins', arguing they should be considered worthless, as part of an ongoing bankruptcy case. During a court hearing on March 26, FTX's legal representatives proposed that the value of several digital tokens tied to FTX's incarcerated founder, Sam Bankman-Fried, be heavily downgraded. FTX's counsel, Brian Glueckstein, suggested the value of clients' claims for tokens from Maps (MAPS), Oxygen (OXY), Serum (SERUM), and Boba (BOBA) to be severely reduced or nullified. He noted that a thorough valuation of these assets, as of the date of the petition, justifies a significant discount.
"There is no existing and future market in which these digital assets hold the value that the customers assume," Glueckstein stated. Sabrina Howell, FTX's valuation professional, concluded that given that over 95% of OXY and MAP tokens were held by the firm, selling them could take years. Based on this evaluation, FTX insists claims connected to MAPS and OXY tokens, valued at over $600 million currently, should be declared valueless. In contrast, SERUM tokens claims, worth $509 million, should witness around a 58% discount.
However, FTX's customers, who still hold these 'Sam coins' have objected to these valuations and demanded the lawyer's estimates be overruled. They argue that the combined value of these four digital assets exceeds $1.1 billion. Judge John Dorsey noted the difficulty in accurately quantifying cryptocurrency's worth, characterizing digital assets as bearing "no intrinsic value." He stated, "The value solely comes from the trades. From what I gather, cryptocurrency's worth is purely driven by sentiment." He promised to consider the arguments from both parties before deciding on the final estimated value of these disputed digital tokens.
MAPS, the native token of the Alameda-supported Web3 travel platform Maps.me, has seen a significant drop of 98% from its peak in May 2021. Its current value is just $0.03, as per CoinGecko's data. OXY, a token of the Oxygen DeFi brokerage, is also down 98% from its all-time high and trades presently at $0.08. SERUM, the token from FTX's decentralised exchange, is down by a staggering 99.5% and is currently priced at $0.06 per token. The U.S. government found Bankman-Fried guilty of seven fraud charges about a year post FTX's collapse. The prosecution suggested a maximum 50-year sentence. However, his attorneys argue this unfairly demonizes him as a ruthless super-villain.
Published At
3/27/2024 7:42:35 AM
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