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The market for FTX creditor claims is experiencing a significant surge in value, with some claims reportedly trading for more than 50 cents on the dollar.
According to Thomas Braziel, from 117 Partners which specialises in crypto bankruptcy claims, a creditor claim worth over $20 million recently fetched a price ranging between 52 and 53 cents at an auction held last week. While it’s a significant value, he did note that claims of this quality are exceptional. Smaller claims are north of $500,000 to $500,000 and upwards.
These smaller claims are currently trading in the range of 30 to 40 cents. Braziel also noted that only substantial claims with the right buyer can get these prices. The upward trajectory in the value of creditor claims seems to be linked to recent efforts by FTX and capital-raising endeavours by Anthropic, a firm in which FTX had invested prior to the attack.
Anthropic’s relevance in the FTX claims
In September, Amazon announced that it had invested $4 billion into Anthropic, estimating the company’s value at $30 billion. In turn, this puts FTX’s investment in the firm worth as much as $4 billion. According to a post by the FTX creditor coalition at the beginning of October, this valuation might be sufficient to enable FTX creditors to recover their losses.
Despite the growing interest in FTX claims, Braziel noted that there were still several issues to address, but the overall trend of increasing claim values is a positive sign for creditors.
FTX shortfall claim
A key component of FTX’s amended support plan is the “shortfall claim”. In ths, FTX debtors estimate that customers of FTX.com and FTX US will collectively receive 90% of distributable assets. The shortfall claim is valued at approximately $8.9 billion for FTX.com and $166 million for FTX.US. Braziel explained that the support agreement and outline for the trading and market firms involved will be helpful to help them sell their claims.