Home CryptocurrencyBitcoin FTX claims rise to 57% as Sam Bankman-Fried found guilty on all charges

FTX claims rise to 57% as Sam Bankman-Fried found guilty on all charges

by SuperiorInvest

The current price of FTX claims has reached a high of 57%, according to data from Claims Market. The rise in FTX claims price is attributed to the valuation of artificial intelligence (AI) companies that the now-bankrupt crypto exchange previously invested in.

Creditors assert their rights to try to recover part of their investment when companies experience financial difficulties or go bankrupt. Based on estimates of the total amount recovered, investors frequently negotiate these claims. There is an increase in the estimated recovery value when the price of a claim increases.

FTX Claims. Source: Claims Market

As the value of FTX’s investment in these AI companies increased, so did the potential amount that could be recovered from its bankruptcy proceedings. A claim is a legal assertion of a certain monetary amount.

The claim percentage value refers to the percentage of the investment amount that is expected to be recovered from the platform. FTX’s claims value has jumped to the top spot compared to other bankrupt crypto companies such as Celsius at 35% to 40%, Genesis at about 50%, Alameda at 10%, and Three Arrows Capital with only 7% and 9%.

Related: ‘Fuck the regulators,’ SBF said behind closed doors: Report

The increase in FTX claims also comes amid the public trial of former FTX CEO Sam Bankman-Fried, which ends on November 2, with the jury finding him guilty on all seven charges. The judge will announce the sentence in March 2024.

FTX’s claims have been a major topic of discussion among the crypto community throughout the bankruptcy proceedings. Previously, the judge in the case had allowed FTX to sell almost $3.4 billion in crypto assets on the market to compensate creditors. With the rising price of cryptocurrencies and the rising valuation of the companies FTX invested in, creditors have a good chance of returning a significant portion of FTX’s lost money.

Magazine: BitCulture: Fine Arts in Solana, AI Music, Podcast + Book Reviews

Source Link

Related Posts

%d bloggers like this: