Celsius, FTX, Voyager users sell bankruptcy claims for pennies on the dollar

admin December 29, 2022

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Hundreds of Celsius, FTX and Voyager customers have opted to sidestep the bankruptcy process by selling bonds for a fraction of face value, Wall Street Journal report.

Mt. Gox is a reminder of what lies ahead

Bankruptcy administration can take years to resolve depending on the complexity of the case.

Bitcoin Exchange Mt Gox Closes 2014 After being hacked for a reported 650,000 to 850,000 BTC. About eight years later, the administrator is preparing to distribute the remaining assets to users.

around it 140,000BTC Represents a return of about 20% for the lower estimate of total loss, or a return of 16% for the higher estimate.

With the uncertainty about the assets remaining in Celsius, FTX and Voyager and the potential for a long wait, it is understandable that some creditors are willing to sell their bonds at a loss.

Celsius, FTX and Voyager Users Face Uncertainty

Several companies that specialize in bankruptcy bond purchases are moving forward and taking advantage of users who want to move on.

Investment firm Cherokee Acquisition said creditors holding $1 billion in FTX and $100 million in Celsius approached them to negotiate a deal.

Similarly, according to bankruptcy marketplace Xclaim, which matches buyers and sellers for bankruptcy filings, 500 Celsius, FTX and Voyager users have posted claims on the platform.

The Xclaim website details what percentages users can expect. FTX users will be rewarded up to 13.5%, Celsius users up to 19% and Voyager users up to 41%.

Xclaim founder and CEO Matt Sedigh said claim pricing could change on a daily basis depending on developments that occur.

For example, Voyager’s billing rate was the highest of the three at 41%, but before FTX’s collapse (when the exchange agreed to buy Voyager), billing was as high as 64%. rice field.

However, some users are willing to stick to charges to recover more, if not their entire outstanding balance. .