Some investors who have claims on the crypto exchanges FTX, Celsius Network, BlockFi, and Voyager Digital are considering transferring their claims to others rather than waiting for the lengthy bankruptcy process.
According to data from Xclaim, a crypto claims trading startup, there are hundreds of investors who have been impacted by the recent collapses of these platforms and do not want to risk going through the lengthy bankruptcy process without any guarantee of receiving compensation.
In fact, some investors are selling their claims in an effort to receive some compensation, even if it means incurring losses. As of now, there are nearly 10,000 listed claims, including 9,072 on Celsius Network, 93 on Voyager, 67 on FTX, and 23 on BlockFi. These investors are hoping to get something out of the process rather than waiting for the uncertain outcome of the bankruptcy process.
Matt Sedigh, the founder of Xclaim, said in an interview with Wall Street Journal that they have been receiving calls from creditors from various areas of the world. According to the executive, two-thirds of the claims posted are from creditors based in China, Hong Kong and Taiwan.
Several hedge funds and debt investors have been looking to purchase claims. Companies such as Contrarian Capital Management, Invictus Global Management, and NovaWulf Digital Management have acquired some of these claims.
Celsius is planning to file a motion to extend the deadline for users to submit their claims. This decision has caused some frustration among community members, who argue that lawyers are being paid while creditors have to wait longer for a resolution.
In related news, it has been reported that former FTX CEO Sam Bankman-Fried withdrew $684,000 after his release. Some wallets reportedly associated with Bankman-Fried have been flagged, suggesting that he violated the terms of his release by spending more than $1,000 without permission.