FTX creditor claims rise above 50 cents in OTC trading

Thomas Braziel, who specializes in FTX debt claims, said over-the-counter (OTC) trading of some FTX creditor claims valued the claims at more than $0.50. Purchasing the claim entitles the holder to whatever the FTX bankruptcy estate is able to recover, and prices above $0.50 suggest the market currently expects roughly half of user assets to be recovered.

Basile, a partner at 117 Partners, said claims worth more than $20 million sold for around 52 cents on the dollar at Friday’s auction, but only the “biggest, cleanest claims” fetched that price.

Enthusiasm about the value of FTX’s claims has been growing since Anthropic, the artificial intelligence company in which FTX bought a large stake, recently announced a number of large investments. Creditors hope that the sale of Anthropic shares will help return funds to creditors and potentially lead to a full recovery.

In an X poll in January this year, a majority of respondents said they expected claims payout ratios of just 25%. Thereafter, the FTX debtor estate, led by CEO John Ray III, attempted to recoup its funds, beginning to sell tokens and liquidate the estate’s other assets. Meanwhile, Sam Bankman-Fried’s criminal trial continues.

Although the court is on recess, the trial is scheduled to resume this Thursday.

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