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Crypto Customers Sell Claims At A Loss To Avoid Bankruptcy Wait
Instead of waiting for a lengthy bankruptcy process, some investors, who have claims on FTX exchange, Celsius Network, BlockFi and Voyager Digital, are looking to pass on their claims to others.
Uzma D.
12:32 30th Dec, 2022
Markets

Data from crypto claims trading startup Xclaim shows that there are at least hundreds of investors who have been affected by the recent collapses of crypto platforms FTX, Celsius, BlockFi and Voyager who do not want to wait for the lengthy bankruptcy process that doesn’t guarantee that they will even be able to get something.

The investors have listed their claims for sale to get something out of it even though they might incur some losses in the process. At the time of writing, almost ten thousand claims were listed, with 9,072 claims on Celsius Network, 93 claims on Voyager, 67 claims on FTX and 23 claims on BlockFi.

Matt Sedigh, the founder of Xclaim, said in an interview with the mainstream media outlet Wall Street Journal that they have been receiving calls from creditors from various areas of the world. According to the executive, two-thirds of the claims posted are from creditors based in China, Hong Kong and Taiwan.

Some hedge funds and debt investors have been shopping for claims. Companies like Contrarian Capital Management, Invictus Global Management and NovaWulf Digital Management have purchased some of the claims.

Meanwhile, Celsius is preparing to file a motion that extends the deadline for users to submit their claims. Some community members were unhappy with the extension, pointing out how lawyers get paid while the creditors have to wait some more.

In other news, former FTX CEO Sam Bankman-Fried has reportedly cashed out $684,000 after his release. Wallets allegedly connected to Bankman-Fried have been flagged, suggesting that the former CEO broke one of the conditions of his release, which is to not spend more than $1,000 without permission.



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