FTX-Owned Customers Massively Sell Crypto Claims Because Of Waiting For Bankruptcy
Key Points:
- At least hundreds of customers who suffered losses due to the collapse of FTX, Celsius Network and Voyager Digital are seeking to sell their cryptocurrency claims.i
- Customers and other creditors that currently hold about $1 billion in claims on FTX and about $100 million in claims on Celsius have expressed interest in selling them through an online marketplace it operates.
- Hedge funds and distressed debt investors are betting on these assets.
According to the Wall Street Journal, at least hundreds of customers who suffered losses due to the collapse of FTX, Celsius Network, and Voyager Digital are seeking to sell their cryptocurrency claims at a deep discount so that they do not have to wait a few days, months or even years.
Distressed asset investment firm Cherokee Acquisition said customers and other creditors that currently hold about $1 billion in claims on FTX and about $100 million in claims on Celsius had expressed interest in selling them through an online marketplace it operates.
Xclaim Inc., a platform focused on providing encrypted trading claims, said that nearly 500 users of FTX, Celsius, and Voyager had posted about $126 million worth of claims for sale on its platform, of which FTX customers have sold their claims. The cumulative amounted to $91.7 million.
Founder and CEO of Xclaim Matt Sedigh stated that the company receives calls from creditors every day. According to Sedigh, nearly two-thirds of the FTX claims submitted come from creditors residing in China, Hong Kong, and Taiwan because the majority of FTX customers reside abroad.
Plus, hedge funds and distressed debt investors are betting on these assets. Fund managers, including Contrarian Capital Management LLC, Invictus Global Management, and digital asset investment firm NovaWulf Digital Management have purchased claims from Celsius or Voyager creditors, court documents show.
Professional asset managers with the money and time to ride out bankruptcy say they buy tokens they believe have a high upside. Other considerations include analyzing the quality of the tokens they buy in case they cannot be repaid in dollars through bankruptcy.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Website: coincu.com
Harold
Coincu News
Author
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FTX-Owned Customers Massively Sell Crypto Claims Because Of Waiting For Bankruptcy
Key Points:
- At least hundreds of customers who suffered losses due to the collapse of FTX, Celsius Network and Voyager Digital are seeking to sell their cryptocurrency claims.i
- Customers and other creditors that currently hold about $1 billion in claims on FTX and about $100 million in claims on Celsius have expressed interest in selling them through an online marketplace it operates.
- Hedge funds and distressed debt investors are betting on these assets.
According to the Wall Street Journal, at least hundreds of customers who suffered losses due to the collapse of FTX, Celsius Network, and Voyager Digital are seeking to sell their cryptocurrency claims at a deep discount so that they do not have to wait a few days, months or even years.
Distressed asset investment firm Cherokee Acquisition said customers and other creditors that currently hold about $1 billion in claims on FTX and about $100 million in claims on Celsius had expressed interest in selling them through an online marketplace it operates.
Xclaim Inc., a platform focused on providing encrypted trading claims, said that nearly 500 users of FTX, Celsius, and Voyager had posted about $126 million worth of claims for sale on its platform, of which FTX customers have sold their claims. The cumulative amounted to $91.7 million.
Founder and CEO of Xclaim Matt Sedigh stated that the company receives calls from creditors every day. According to Sedigh, nearly two-thirds of the FTX claims submitted come from creditors residing in China, Hong Kong, and Taiwan because the majority of FTX customers reside abroad.
Plus, hedge funds and distressed debt investors are betting on these assets. Fund managers, including Contrarian Capital Management LLC, Invictus Global Management, and digital asset investment firm NovaWulf Digital Management have purchased claims from Celsius or Voyager creditors, court documents show.
Professional asset managers with the money and time to ride out bankruptcy say they buy tokens they believe have a high upside. Other considerations include analyzing the quality of the tokens they buy in case they cannot be repaid in dollars through bankruptcy.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Website: coincu.com
Harold
Coincu News
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