Non-Performing Asset Fund Buys Bankruptcy Claim of FTX

02/21/2023 00:39 • Blockchain Buzz • 138 views

According to the report, according to the source, the non-performing asset fund bought the bankruptcy claim right of FTX at a maximum face value of 20% in the private over-the-counter (OTC) market. FTX currently owes $3.1 billion to the 50 largest creditors. The valuation of FTX’s non-performing assets in the bankruptcy trading market is about 16% of the face value of the claim, and the individual claims being sold on the bankruptcy market XClaim are as high as $27 million. （CoinDesk）

The non-performing asset fund is purchasing FTX non-performing assets at a maximum face value of 20%

Interpret the above information:

According to the CoinDesk report, a non-performing asset fund has recently bought the bankruptcy claim right of FTX at a maximum face value of 20% in the private over-the-counter (OTC) market. This means that the fund has purchased the right to collect the amount FTX owes to its creditors in the case of bankruptcy.

FTX, a cryptocurrency exchange, currently owes $3.1 billion to its 50 largest creditors. However, the valuation of FTX’s non-performing assets in the bankruptcy trading market is only about 16% of the face value of the claim. This indicates that the assets are not performing as well as initially anticipated.

The individual claims being sold on the bankruptcy market XClaim have risen as high as $27 million. This implies that some creditors are currently selling their claims to recover some of their lost funds.

The non-performing asset fund’s purchase of FTX’s bankruptcy claim could be an opportunity to profit off the company’s debts. The fund gets the right to collect the amount FTX owes to its creditors at a lower price than the face value of the claim. However, it is important to note that there is no guarantee that the fund will be able to recover the full amount, as it depends on the performance of FTX’s assets in the future.

This news highlights the potential risks of investing in a cryptocurrency exchange, especially given the volatile nature of the market. FTX’s situation also suggests that even major players in the cryptocurrency market can face significant challenges.

In conclusion, the purchase of FTX’s bankruptcy claim by a non-performing asset fund shows the complexities of the cryptocurrency market and the potential for high-yield investments, but with significant risks. It also underscores the importance of monitoring the performance of digital assets and the need for risk assessment in investments.

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Non-Performing Asset Fund Buys Bankruptcy Claim of FTX

The non-performing asset fund is purchasing FTX non-performing assets at a maximum face value of 20%

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