📣 Some FTX Users Might Not Receive Compensation
postedΒ 27 Mar 2024
FTX's leadership aims to nullify user and investor claims concerning specific tokens linked to investments made by the former CEO, Sam Bankman-Fried. Included in the affected list are tokens such as Maps (MAPS), DeFi Oxygen (OXY), Serum (SERUM), and Boba (BOBA).
FTX attorney Brian Gluckstein explained that upon assessing the assets' value at the bankruptcy filing moment, it was determined that market price liquidation was unfeasible. For instance, FTX's ownership exceeds 95% for both OXY and MAP tokens, making a market sale a process that could extend over a decade.
The customers attribute values to claims on digital assets assuming a market that never has and never will exist,said Gluckstein.
For other tokens, the legal team suggests potentially selling them at a significant markdown if feasible. SERUM was highlighted as an example, with a proposal to slash the asset's valuation by approximately 58%. This strategy aims to facilitate market sale while reducing the claim against the company from $509 million to $213 million.
Clients, however, have resisted this proposal, arguing that the combined value of these assets surpasses $1.1 billion. Acknowledging the complexities in valuing cryptocurrenciesβgiven their high susceptibility to trading sentimentβthe judge has paused to deliberate further on this issue.
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