As of December 30, on the specialised platform Xclaim lists 9,256 claims for sale against the platforms undergoing bankruptcy proceedings: FTX, Celsius Network, BlockFi and Voyager Digital.
Creditors of the failed crypto firms hope to partly recoup losses and avoid waiting for the insolvency or reorganisation proceedings to conclude.
“Bankruptcy takes longer than investors can afford. Some people need money now or want to get it,” explained Vladimir Yelisavchich, founder of the specialised broker Cherokee Acquisition, to The Wall Street Journal.
As of now, Xclaim has attracted 9,072 Celsius Network users, 93 from Voyager Digital, 67 from FTX and 23 from BlockFi.
In an interview with The Wall Street Journal, the service’s founder Matt Sedai said that the platform’s services are used by creditors from around the world. Two-thirds of the listed claims come from residents of China, Hong Kong and Taiwan.
Some of the claims’ buyers have been hedge funds such as Contrarian Capital Management, Invictus Global Management and Novawolf Digital Management.
Professional asset managers have the capital and time to endure bankruptcies. An additional motivation is the prospect of realising growth potential in the tokens being bought back.
Earlier, Celsius Network requested from the court to extend the deadline for creditors to file claims.
Jefferies Financial estimates that creditors of the failed crypto exchange FTX can recover no more than 40% of their investments. Restructuring costs are estimated at up to $1 billion.
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