FTX claims have risen to 50 to 53 cents per dollar
According to Bloomberg News on October 26th, Cherokee Acquisition, a bad asset investment company, is now offering FTX debt at a price of 50 to 53 cents per dollar, up from the range of over 40 cents last week. Since FTX went bankrupt and began recovering billions of dollars in assets, FTX debt claim prices have been relatively stable and rising, and major hedge funds have been buying and selling these claim rights, covering losses from FTX account equity to compensation for losses due to abandoned contracts.
Collapsed Crypto Exchange FTX Sends Funds to Binance in Preparation for Sale to Repay Creditors
Collapsed crypto exchange FTX is reportedly transferring $8.6 million in Ethereum, Chainlink, Aave, and Maker from its wallets to Binance, leading analysts to believe that this is the beginning of a sale to repay creditors. FTX went bankrupt last November due to alleged criminal mismanagement, with around $9 billion in client money going missing. The company's new management is in the process of returning the funds, with a lot of the cash in the form of digital coins and tokens. FTX's ex-CEO and co-founder, Sam Bankman-Fried, is currently on trial facing seven criminal charges related to the collapse of the exchange.
FTT's 24-hour increase reached 25.91%, which may be affected by the news that SBF will appear in court to testify.
According to market data, FTT has surged to 1.4511 USDT in the short term, with a 24-hour increase of 25.91%, possibly due to the news that SBF will testify in court on Thursday. The current price is 1.3341 USDT.
FTX is in talks with three bidders to restart the exchange
FTX is considering proposals from three bidders to restart the exchange and will make a decision on how to proceed by mid-December. FTX is currently negotiating with investors on potentially binding offer details. Possible options include selling the entire exchange, including a list of over 9 million customers, or introducing partners to help restart the exchange. FTX is also considering restarting the exchange on its own. FTX and its main creditor group have preliminarily resolved some disputes in the case, which will enable them to submit a detailed payment plan in December. <br>
FTX is negotiating with three bidders to restart the exchange and will make a decision by mid-December
According to Bloomberg, FTX is in talks with three bidders to restart the cryptocurrency exchange, and the company will make a decision on how to proceed before mid-December.
It is reported that FTX is negotiating with investors on potentially binding tender details, including options to sell the entire exchange (including a list of over 9 million customers), or to introduce partners to help restart the exchange. FTX is also considering restarting the trading platform on its own.
Andrew Dietderich, the company's lawyer, stated at a court hearing that FTX and its main group of creditors have preliminarily resolved some of the most difficult disputes in the case, which will allow the company to submit a detailed payment plan in December.
FTX Creditors Alliance: Preliminary public bidding acquisition will be announced before December 16
FTX 2.0 Coalition, a group of FTX creditors, has released the latest court update: 1. The stalking horse bid will be announced before December 16th. Note: The stalking horse bid refers to the initial public bidding action proposed by the buyer selected by the company applying for bankruptcy protection, which can attract more potential buyers to propose competitive acquisition prices. 2. A motion to estimate the value of cryptocurrency claims will be made in November. 3. Customer names will remain anonymous (permanently anonymous for natural persons).
FTX co-founder, CEO of Alameda, and head of engineering plead guilty in exchange for cooperation against Sam Bankman-Fried
Gary Wang, Caroline Ellison, and Nishad Singh, who all pleaded guilty to charges related to the downfall of crypto exchange FTX and its sister company in November 2022, testified against Sam Bankman-Fried at his trial in the Southern District of New York courthouse. The three are facing potential prison sentences of up to 50, 110, and 75 years, respectively. However, as part of their cooperation agreements with the U.S. government, they may avoid jail time if they continue to cooperate and tell the truth. While it is not guaranteed, it is typical for first-time offenders in white-collar cases to avoid jail time as cooperating witnesses.
FTX’s Proposed Settlement Could Pay Creditors 90% of FTX’s Remaining Assets Following Bankruptcy Proceedings
According to CoinDesk, FTX is proposing a settlement agreement to pay 90% of the remaining assets after the FTX bankruptcy proceedings to creditors. Lawyers representing some creditors are now working to secure enough investor support to implement this agreement.
FTX creditor lawyer: The goal is to allow users to get their locked funds back in July next year
Lawyers representing FTX creditors are working to push the bankruptcy case forward with the goal of returning 90% of funds to users. The lawyers must obtain the support of 60 individuals and entities in the creditor group and 75% of investors who register as members in the coming weeks before December 1st. Eversheds Sutherland lawyer Sarah Paul said that even if the settlement plan is approved by creditors, approval from the bankruptcy court is still required. The ultimate goal is to emerge from bankruptcy by around July 2024, at which time users will be able to retrieve funds that have been locked since last year.
The Price of Some of FTX’s Claims Has Exceeded 50%, and Creditors Are Pinning Their Hopes on FTX’s Anthropic Shares
Thomas Braziel, a partner at 117 Partners specializing in FTX debt research, said that some FTX debt off-exchange trades have been valued at over 50%, indicating that the market currently expects about half of user assets to be recovered. Last Friday, a debt worth over $20 million was sold at an auction for about 52% of the price, but only "the largest and cleanest debt" could be sold at this price.
Claims of some FTX creditors rise to 50 cents in OTC trading
Thomas Braziel, who specializes in FTX debt claims, stated that some FTX creditors value their claims at over $0.5. Purchasing a claim gives the holder the right to recover any assets from FTX's bankruptcy estate, and a price above $0.50 indicates that the market currently expects about half of user assets to be recovered.
Braziel, a partner at 117 Partners, said that in Friday's auction, claims worth over $20 million were sold at around 52 cents, but only the "largest, cleanest claims" were able to fetch that price. Since the artificial intelligence company Anthropic, which purchased a large stake in FTX, announced several major investments recently, enthusiasm for the value of FTX claims has continued to rise. Creditors hope that selling shares in Anthropic will help return funds to creditors and potentially achieve full recovery.
In a January survey of X, most respondents expected a claims payout rate of only 25%. Since then, the FTX debtor estate led by CEO John Ray III has attempted to recover funds, started selling tokens, and liquidated other assets of the estate. Meanwhile, SBF's criminal trial is still ongoing.
Sam Bankman-Fried's Trial Nears End as Prosecution Rests Case in $8 Billion Fraud Case
The trial of Sam Bankman-Fried is nearing its end, with the prosecution set to conclude their case on October 26 after hearing from almost 20 witnesses. The prosecution has argued that Bankman-Fried intentionally deceived former FTX employees, customers, investors, government officials, and law enforcement agents, resulting in an $8 billion gap between FTX and Alameda Research in November 2022. Bankman-Fried's defense has not yet confirmed whether they will present a case, but if they do, it will begin on October 26. The defense has struggled to present a narrative to jurors, and the prosecution has the burden of proving the alleged crimes.
SOL/ETH exchange rate hits 23-year high
According to the market data from Eu Yi OKX, the SOL/ETH exchange rate has reached a 23-year high of 0.018 and has returned to the level of November 9, 2022. As previously reported , SOL fell 30% on November 9, 2022 when FTX announced the closure of its withdrawal function.
The FTX Withdrawal Links From “Mail@networkforgood” Are All Phishing Scams
FTX creditor Sunil posted on X platform to remind users that the FTX withdrawal links received recently are all phishing scams, and specifically pointed out the malicious address "[email protected]". Users are advised to carefully check the sender's address and not click on malicious links.
Perpetrators Pretending to Be FTX Officials Are Sending Emails Containing Fraudulent Information to Creditors’ Mailboxes
On October 21st, according to multiple sources, perpetrators who are impersonating FTX officials are sending emails containing fraudulent information to creditors' email addresses. Investors should not believe these emails and should properly safeguard their personal assets.
FTX’s Former General Counsel: Google and BlackRock Considered Participating in FTX’s C1 Round of Financing
Can Sun, former general counsel of FTX, testified that FTX's Series C financing began in "late summer and autumn of 2022." An electronic spreadsheet showed that 15 potential investors, including BlackRock, Google, and Apollo, were interested in participating in this round of financing, with the possibility of BlackRock and Google investing being "medium." Both companies conducted due diligence on FTX before it went bankrupt.
Former FTX General Counsel Resigned From the Company After Discovering Huge Hole in Balance Sheet
October 20th, former FTX general counsel Can Sun testified in the SBF criminal trial, stating that in November 2022, asset management company Apollo Global Management expressed interest in investing in FTX and requested a copy of the financial statements. When the copies were made, Can Sun discovered a $7 billion gap in FTX's balance sheet related to Alameda. Can Sun resigned from the company afterwards. Can Sun previously worked as a lawyer at Fenwick and West and joined FTX in August 2021.
FTX lawyer: Asset management giant Apollo withdrew from FTX rescue plan after learning about financial situation
Former senior lawyer Sam Bankman-Fried stated that asset management giant Apollo Global Management withdrew from the FTX rescue plan at the last minute after learning that billions of dollars of customer funds were missing and the exchange could not provide legal basis for the shortage. FTX collapsed a few days later.
Former FTX General Counsel: Lending client funds to Alameda Research was never approved
Can Sun, FTX's general counsel, told the jury during Sam Bankman-Fried's criminal fraud trial that he "never approved" of FTX lending customer funds to sister company Alameda Research. Can Sun served as FTX's general counsel from August 2021 to November 2022, during the period when the exchange collapsed. When asked if he agreed to Alameda using FTX customer funds, he said "absolutely not."
FTX used more than $1 billion in customer funds to buy back shares from Binance
According to the US Department of Justice (DOJ), they have hired accounting professor Peter Easton from the University of Notre Dame to track billions of dollars in funds between Alameda and FTX. During the SBF trial hearing, the professor testified that FTX used customer funds to repurchase all of its shares held by Binance in 2022, with over $1 billion coming from FTX's customer funds.
Easton testified that user deposits were also reinvested in businesses and real estate, used for political donations, and donated to charitable organizations.
Previously, in 2019, as part of a strategic partnership between the two companies, Binance invested an undisclosed amount of funds in FTX. Binance CEO CZ stated in an article in 2022 that the company had received over $2.1 billion in BUSD and FTX's FTT tokens as part of the buyback. (CoinDesk)
Earlier reports stated that in 2021, SBF repurchased FTX shares held by CZ for $2.275 billion in response to regulatory scrutiny.
