Some investors who hold claims on FTX, Celsius Network, BlockFi, and Voyager Digital are attempting to sell such rights to other parties so that they don’t have to wait for the lengthy bankruptcy process that these companies will have to go through. This is done so that the investors don’t have to wait for the companies to be forced to file for bankruptcy.
There are at least hundreds of investors who have been negatively impacted by the recent failures of cryptocurrency platforms FTX, Celsius, BlockFi, and Voyager and do not wish to wait for a drawn-out bankruptcy process that does not guarantee that they will even be able to get anything back, according to the information that was provided by the startup company Xclaim, which specializes in the trading of cryptocurrency claims. Xclaim is a company that specializes in cryptocurrency claims trading.
In spite of the possibility that they would incur some financial losses as a direct result of this transaction, the investors have decided to put their claims up for auction in the hope of turning a profit of some sort from the current predicament.
There were over 10,000 claims that had been posted, with 9,072 claims having been posted on Celsius Network, 93 claims having been posted on Voyager, 67 claims having been posted on FTX, and 23 claims having been put on BlockFi.
Matt Sedigh, the man who founded Xclaim, recently gave an interview to the Wall Street Journal in which he stated that his company has been taking calls from creditors located all over the world.
According to the executive, two thirds of the claims that were submitted came from creditors located in China, Hong Kong, and Taiwan, respectively.
It has come to the attention of certain debt investors and hedge funds that they may be interested in purchasing claims.
There have been a number of companies, including Contrarian Capital Management, Invictus Global Management, and NovaWulf Digital Management, that have acquired parts of the claims.
During this period, Celsius is making preparations to introduce a motion that will extend the deadline for users to submit their claims. This motion will allow for more time for consumers to submit their claims.
According to recent allegations, former FTX CEO Sam Bankman-Fried is believed to have cashed out a total of $684,000 in the time after he was released on bond.