The recent surge in FTX claims is being attributed to its early investment in AI companies whose valuation has jumped in recent times.The current claim pricing of FTX has reached a maximum of 57%, according to data from Claims Market. The increase in FTX’s claim pricing is attributed to the valuation of the Artificial intelligence companies that the now-bankrupt crypto exchange previously invested in.
Creditors stake their claims to try to recoup some of their investment when businesses experience financial difficulties or bankruptcy. Based on their estimates of the total amount recovered, investors frequently trade these claims. There is an increase in the estimated recovery value when the pricing of a claim rises.As the value of FTX investment in these AI companies jumped, so did the potential amount that could be recovered from its bankruptcy procedure.
The claim percentage value here refers to the amount of expected recovery from the platform. FTX claims value jumped highest when compared to other bankrupt crypto firms such as Celsius with about 35-40%, Genesis with about 50%, Alameda at 10%, and Three Arrows Capital with only 7% to 9%.The surge in FTX claims also comes amid former FTX CEO Sam BankFried’s public trial ending on Nov.