In a recent development within the bankruptcy proceedings of embattled cryptocurrency exchange FTX, the company has initiated a move to dispute investors’ claims on certain digital tokens called ‘Sam Coins’.
FTX argues that the value of these tokens should be reset to zero in the context of the bankruptcy case.
Significant reduction in claims on number of digital tokens
During a March 26 hearing before Delaware bankruptcy judge John Dorsey, FTX attorneys argued for a significant reduction in claims on a number of digital tokens strongly linked to Sam “SBF” Bankman-Fried, the discredited founder of FTX who is currently incarcerated.
The tokens in question, including those of the travel platform Maps (MAPS), DeFi brokerage Oxygen (OXY), the decentralized exchange Serum (SERUM), and the hybrid blockchain Boba (BOBA), should be strongly influenced by FTX lawyer Brian Glueckstein. be reduced in value or declared completely worthless. This move comes in response to investors valuing their tokens at hundreds of millions of dollars.
No realistic market value for these assets
However, FTX, through an analysis conducted by hired experts, states that there is no realistic market value for these assets as there has never been and likely never will be a real market for them. Sabrina Howell, valuation expert for FTX, emphasized that given the company owns more than 95% of the OXY and MAP tokens, it would take decades to sell them.
On the other hand, lawyer Kurt Gwynne, who represents the creditors, argued that FTX used experts to artificially low the value of these tokens. According to FTX, claims related to MAPS and OXY, valued at over $600 million, should be considered worthless, while claims on SERUM tokens, valued at $509 million, should be discounted by around 58%.
However, FTX’s clients are demanding that FTX’s lawyers’ estimates be rejected, claiming that the four disputed digital assets still have a total value of more than $1.1 billion.
Highlighting the complexity of quantifying the value of cryptocurrency, Judge Dorsey described digital assets as “without inherent value.” The judge has indicated that it will consider both sides of the argument before deciding on the valuation of the disputed crypto assets.
The collapse of FTX and the associated legal battle cast a shadow over the future of cryptocurrency and its valuation in legal proceedings. With Sam Bankman-Fried facing serious charges and a possible lengthy prison sentence, the crypto industry remains awaiting further developments.
Source: https://newsbit.nl/ftx-in-strijd-tegen-waardering-sam-coins-in-faillissementszaak/
