Investors are making higher offers for FTX customer accounts trapped in bankruptcy after lawyers for the failed cryptocurrency exchange said they have located $5 billion in cash and other liquid assets, WSJ Pro Bankruptcy reported. Bids on FTX accounts hit 15.5 cents on the dollar on Wednesday on the bankruptcy claims trading platform Xclaim Inc., which runs a market for buying and selling cryptocurrency accounts in chapter 11. Cherokee Acquisition, which runs a separate bankruptcy claims market, said bids on FTX claims increased to roughly 14 cents on the dollar this week after lawyers detailed their efforts to find and secure the company’s assets. The bids were still just a fraction of the accounts’ listed value, but they represented the highest offers since the cryptocurrency firm’s swift collapse in early November. FTX accounts had been priced at between 6 cents and 11.5 cents on the dollar since it plunged into chapter 11, according to Cherokee Acquisition. The uptick indicated some investors now believe recoveries might be slightly higher than previously expected for FTX’s roughly 9 million customer accounts. FTX lawyers disclosed on Wednesday that they have located $5 billion in cash and liquid assets and that they plan to sell hundreds of additional investment holdings with a book value of $4.6 billion. Read more. (Subscription required.)
The intersection of cryptocurrency and bankruptcy is one of the key issues to be discussed by expert panels at ABI's upcoming Rocky Mountain Bankruptcy Conference Jan. 26-27 in Salt Lake City. Are you registered?
