Cherokee Acquisition, a distressed investment firm, currently observes FTX claims trading between 50 and 53 cents on the dollar. Since FTX’s bankruptcy and ongoing efforts to recover billions of dollars in assets, the value of these claims has consistently risen. It is worth noting that prominent hedge funds actively participate in buying and selling these claims.
According to a report by Bloomberg, FTX claims have experienced an increase in value due to emerging potential bidders for the closed exchange. This rise in Cherokee claims’ worth is encouraging for investors interested in distressed assets.
However, it’s important to note that FTX customers are selling their bankruptcy claims at significant discounts. Customers with a combined total of $1 billion in credit claims have expressed their intention to sell these claims through Cherokee Acquisition, the buyer for bankruptcy claims. On Cherokee’s online marketplace, FTX deposit claims fetch between 8 and 12 cents on the dollar.
The pricing of FTX claims on recent data from Matrixport, a cryptocurrency services provider, suggests a lower chance for FTX users to recover their funds fully. According to the monitoring conducted by Matrixport, creditor claims against FTX have recently reached an average payout of 37 cents for every dollar. It represents the highest level since the bankruptcy filing in late 2022 and reflects a substantial increase from slightly over 10 cents at the beginning of 2023.
FTX Exchange Attracts Three Potential Buyers, FTX Claims Climb
During the court proceedings on Tuesday, Kevin M. Cofsky, an investment banker at FTX, affirmed that the company engages in daily discussions with multiple parties. These conversations center around various potential courses of action: selling the entire exchange, collaborating with an external entity to facilitate its revival, or independently reestablishing it.
Besides, Cherokee Acquisition, an investment banking company, specializes in various financial services. Their expertise lies in handling bankruptcy claims, vendor put options, and receivables finance. Known for its strong presence in purchasing bankruptcy and class action claims, the company prioritizes expediting and streamlining the closing process. Moreover, Cherokee actively assists vendors by structuring and marketing put options to protect their high-risk receivables.
Cherokee Acquisition has recently increased its quotes for FTX claims. Founder Vladimir Jelisavcic stated that the current range now stands between 50 and 53 cents on the dollar. This marks a significant rise from last week’s pricing, which hovered in the lower-to-mid 40 cents range. The value surge in FTX Group claims can be attributed to an announcement that the defunct crypto conglomerate is currently evaluating proposals from three potential buyers for its inactive exchange.
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The author’s views are for reference only and shall not constitute any investment advice. Please ensure you fully understand and assess the products and associated risks before purchasing.
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