Best crypto insights delivered straight to your inbox.
Digital asset investment company CoinShares has just revealed the successful sale of its FTX claim. The agreement, subject to customary closing conditions, promises a recovery rate of 116% net of broker fees, translating to a hefty return of $39.6 million on a $33.6 million claim.
The increased financial flexibility resulting from this transaction will allow CoinShares to reinvest in growth opportunities, further strengthening its market position. The successful claim sale benefits the company and its shareholders, who can look forward to increased returns.
Jean-Marie Mognetti, CEO of CoinShares, emphasized the significance of this recovery rate, noting:
“The resolution of the FTX situation has been highly favourable for CoinShares. This exceptional recovery rate is a testament to the diligence and expertise of our team. We remain dedicated to leveraging this success to reward our shareholders and to drive further growth and innovation within the digital asset industry.”
Last month, hedge funds and other distressed investors celebrated when bankruptcy managers announced that FTX, the collapsed crypto exchange helmed by Sam Bankman-Fried, had enough assets to more than make its creditors whole. This news came as a relief to many who had been concerned about the size of potential losses from the FTX debacle.
However, not everyone is pleased with the proposed bankruptcy plan. Some FTX customers have raised objections, arguing that the plan violates their property rights by selling their assets to pay off third-party creditors, including the United States government.
The FTX Customers Ad Hoc Committee, a group formed to represent the interests of FTX customers in the bankruptcy case, has been particularly vocal.
On June 19, a representative of the FTX customers said that they wanted their cryptocurrency returned to them instead of being paid a cash balance. “We never gave FTX our coins,” they stated.
This sentiment follows a May 9 report from the Los Angeles Times, which indicated that nearly all FTX customers would get their money back, plus interest if the bankruptcy plan is approved.
Jai Hamid
Don’t just read crypto news. Understand it. Subscribe to our newsletter. It's free.
Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.
Jai Hamid
Jai Hamid has been covering crypto, stock markets, technology, the global economy, and the geopolitical events that affect markets for the past 6 years. She has worked with blockchain-focused publications including AMB Crypto, Coin Edition, and CryptoTale on market analyses, major companies, regulation, and macroeconomic trends. She has attended London School of Journalism and thrice shared crypto market insights on one of Africa’s top TV networks.
CRASH COURSE
- Which cryptocurrencies can make you money
- How to boost your security with a wallet (and which ones are actually worth using)
- Little-known investment strategies that the pros use
- How to get started investing in crypto (which exchanges to use, the best crypto to buy etc)