Concerns Emerge as FTX Values Claims Under Market Rates

Crypto News Exchanges

Concerns Emerge as FTX Values Crypto Claims Well Under Current Market Rates

Written by Aaron S.,

Editor-In-Chief

Last Updated: March 04, 2024

Key Takeaways

FTX initiates a claims process for key cryptocurrencies at rates significantly lower than current market values, causing widespread user dissatisfaction.
PwC shed light on FTX's Chapter 11 settlement, aiming for asset consolidation.
FTX warns against unauthorized bids, designating Galaxy Asset Management as the only approved entity for sales under court orders.

Stop overpaying - start transferring money with Ogvio. Sign up, invite friends & grab Rewards now! 🎁

Concerns Emerge as FTX Values Crypto Claims Well Under Current Market Rates

BITDEGREE IN YOUR SOCIAL FEED

FTX has launched a claims process for its major cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), Binance Coin (BNB), and Solana (SOL), at prices significantly below their current market values.

This has led to widespread concern among investors who fell victim to the crypto exchange's bankruptcy.

What Is Tether? (USDT SIMPLY Explained With Animations)

Did you know?

Want to get smarter & wealthier with crypto?

Subscribe - We publish new crypto explainer videos every week!

Members of the crypto community voiced dissatisfaction on social media platforms, expressing feeling robbed and demanding transparency from FTX.

In response, PricewaterhouseCoopers (PwC) released a statement on their website, shedding light on the FTX predicament. It revealed that FTX Digital Markets Ltd. is proceeding with a Chapter 11 agreement with FTX Trading Ltd. and related debtors to merge assets from the estates of both entities.

In addition to these issues, FTX has warned against unauthorized bids on its assets, specifying that Galaxy Asset Management is the only entity authorized to manage sales under bankruptcy court orders.

The situation underscores the challenges faced by FTX and its creditors in navigating the bankruptcy process, emphasizing the importance of transparency and legal oversight in resolving outstanding claims.

FTX has also recently received court approval to sell its billion-dollar stake in Anthropic, further highlighting the ongoing efforts to repay its creditors.

As for the founder of FTX, Sam Bankman-Fried was found guilty of seven fraud-related charges. SBF's legal team has recently made a plea to reduce his prison sentence, emphasizing his status as a "first-time, non-violent offender" involved in actions where victims are expected to be fully compensated.