FTX’s Questionable Claim Valuations Spark Community Distrust And Demand Accountability

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FTX's Questionable Claim Valuations Spark Community Distrust And Demand Accountability

March 4, 2024 by Kashif Saleem

FTX, the bankrupt crypto exchange is offering a claims process with cryptocurrency valuations for major cryptocurrencies including Bitcoin (BTC), Ethereum (ETH), Solana (SOL) and Binance Coin (BNB) that are much lower than their current market prices. This has triggered questions and worries among crypto investors and users.

According to Wu Blockchain, FTX has set its claim window prices for BTC at $16,871, ETH ($1,258), SOL ($16.24), and BNB ($286). The figures are in clear contrast with the market rates at present which are BTC($62144), ETH($3424.62), SOL ($129.96) and BNB($411.32). This has raised concern about the fairness and transparency of the platform among those affected by FTX’s bankruptcy.

In response to criticisms, PWC issued a statement that gives a clear picture of where FTX stands at the moment. According to PwC, FTX Digital Markets Ltd is in Chapter 11 settlement proceedings along with some affiliated debtors of FTX Trading Ltd. PwC further noted that there is an aim to consolidate assets of both companies’ estates.

The official liquidator of this bankrupt crypto exchange invited creditors to file their e-claims by 15th May 2024. Managed by PwC, the claims portal will start making its first phase interim distributions towards the end of 2024 or the beginning of 2025, while all eligible claims are expected to be in USD denomination.

FTX’s official liquidator notified creditors to submit electronic claims by May 15, 2024. The PwC-managed claims portal is expected to make its first interim distribution in late 2024 or early 2025, with all eligible claims denominated in U.S. dollars. https://t.co/uucEq0IMcD https://t.co/FsVkH5GKvh

— Wu Blockchain (@WuBlockchain) March 3, 2024

FTX Issues Warning On Unauthorized Entities

Through enacting proactive measures, The bankrupt crypto exchange warned its authorized investment manager. In this regard, the exchange has been made aware that some unauthorized entities have started to make bids for specific FTX Debtors, and this has necessitated taking preventive steps by the exchange.

The bankrupt crypto exchange has told its creditors on the X platform via its first communication per month that the court-ordered sale of Digital Assets by FTX Debtors is specifically under Galaxy Asset Management, which is an appointed investment manager. As a result, it is only Galaxy Asset Management that can make sales offers or receive purchase requests.

Moreover, the U.S. Bankruptcy Court for the District of Delaware granted permission to this bankrupt crypto exchange on February 22nd. The sale will enable this exchange to divest its position in Anthropic, an AI company whose value exceeds $1 billion. The decision is a turning point in the insolvency phase and helps predict where the exchange is going with its asset management.

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