- FTX creditor claims are being offered at 13 cents on the dollar on bankruptcy claims marketplace Xclaim.
- Xclaim has listed over $91 million worth of FTX customer claims, the company told Insider.
- FTX creditors are willing to take steep losses to recoup funds amid the company’s uncertain bankruptcy process.
FTX creditors appear willing to take steep losses in an effort to recoup something from Sam Bankman-Fried’s bankrupt cryptocurrency exchange.
Customers are likely to get around 13 cents on the dollar for their claims, according to data from bankruptcy claims trading marketplace Xclaim.
Claims from other embattled crypto firms are trading significantly higher. Centralized lenders Celsius and BlockFi, along with digital asset brokerage Voyager, are trading around 18.5 cents, 28.5 cents, and 41 cents on the dollar.
This price disparity between claims can be attributed to the lack of public information available about the state of FTX account holders’ funds, Xclaim’s chief strategy officer Andrew Glantz told CoinDesk.
“Part of that is because most creditors, most account holders, still can’t access their accounts even to provide a basic screenshot of what their account looks like,” Glantz said to the outlet. “It becomes harder to verify that they are actually owed.”
He added: “That’s much easier in Celsius and Voyager, where creditors, even if their funds are frozen, can at least access their account, take a screenshot, provide account details, and get a buyer comfortable that their claim is a valid claim.”
Xclaim has listed around $91.7 million in FTX creditor claims. The firm says it’s doubled its number of claims buyers following FTX’s swift collapse late last year.
Bankman-Fried’s FTX, and around 130 related entities, filed for bankruptcy after a liquidity crisis left thousands of users unable to retrieve their assets in November. Some reports indicate that at least $8 billion of customer money has been lost on the platform.
Securing assets during the bankruptcy process may take awhile because of the FTX’s near-total lack of internal accounting, according to the company’s new Chief Executive Officer John Ray.
“I’ve just never seen an utter lack of record keeping,” Ray, who oversaw energy giant Enron’s restructuring process, told the House Financial Services Committee. “Absolutely no internal controls whatsoever.”