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Reported by Cointelegraph, prices of claims on the crypto exchange FTX have increased ahead of a Jan. 25 estimation hearing, where creditors expect the ruling to favor their demand for “in kind” repayments in cryptocurrency.
FTX claims are now trading at almost 80 cents to the dollar, according to Cherokee Acquisition, an investment banking firm that specializes in bankruptcy claims and providing liquidity on FTX claims.
FTX has proposed to pay back its creditors based on the price of cryptocurrency on the day of its bankruptcy. However, FTX creditors remain determined to receive an “in-kind” payment, which considers only the number of tokens lost and not the market prices.
A higher percentage claim value reflects a higher confidence among creditors in receiving sizeable repayments. In comparison, other bankrupt crypto companies, such as Alameda Research, Genesis Global and Three Arrows Capital, have also substantially increased claims prices by roughly 45%, 67% and 32%, respectively.
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