FTX's $5 billion haul fails to boost price of bankruptcy claims, Xclaim says

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FTX claims, which are trading at around 15 cents on the dollar on Xclaim, barely moved in price when liquidators located $5 billion in assets.

The announcement that FTX liquidators located $5 billion in assets had “minimal impact” on FTX claims on bankruptcy trading platform Xclaim.When liquidators of collapsed crypto exchange FTX revealed they had$5 billion in assets this week, one might assume that any bankruptcy claims would jump in price.

FTX claims are currently trading on the Xclaim marketplace for as much as 15.5 cents on the dollar for pristine claims, which are those that have all the appropriate supporting documentation. Other claims tend to trade around 2% to 3% lower.The pricing is dynamic, often moving with the market's views of how quickly the bankruptcy proceedings might be resolved.Bankruptcy claims are an incredibly illiquid asset class.

“Any FTX customer who's looking for cash, or expecting cash in the next two years, I would feel very strongly saying that they're unlikely to see that,” Sedigh said. “Prices will go up if they find more assets, or if they gain more certainty. Prices will go down if those assets are worthless and litigation would extend the timeline.”Despite this, there’s still an appetite to buy claims.

 

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