CoinShares Secures $39.78 Million from FTX Claim Sale

CoinShares International, a leading European digital asset investment firm, successfully concluded the sale of its claim against the bankrupt cryptocurrency exchange FTX on June 24. The transaction, which still needs to clear some legal hurdles, is set to yield $39.78 million.

CoinShares Successful Claim Sale

According to a press release, the claim sale is a huge financial win for CoinShares, which achieved a 116% recovery rate after broker fees. The company’s claim, which was initially valued at about $33.78 million, has now increased to $39.78 million.

🔔 @CoinSharesCo Gains 116% Return from Selling @FTX_Official Claim !#CoinShares International, a European digital asset investment company, announced the successful sale of its #FTX claim. The agreement, pending customary closing conditions, will yield a 116% recovery rate net… pic.twitter.com/XDESUIPjnD

— Altcoin Alerts (@Altcoin_Alerts) June 24, 2024

Reacting to this milestone, Jean-Marie Mognetti, CEO of CoinShares, stated that “the resolution of the FTX situation has been highly favorable for CoinShares.” He also accorded the successful recovery rate to the “diligence and expertise” of the CoinShares team.

Mognetti further emphasized the importance of the sale for the company’s future growth and market position.

“We remain dedicated to leveraging this success to reward our shareholders and to drive further growth and innovation within the digital asset industry,” Mognetti added, underlining the company’s commitment to future reinvestment and expansion.

The financial boost is expected to positively affect CoinShares’ operations, particularly in improving shareholder returns and expanding its service offering.

Additionally, CoinShares intends to reinvest in growth opportunities to strengthen its position in the competitive digital asset market.

Broader FTX Legal And Creditors Saga

While CoinShares celebrates its successful claim sale, the broader FTX bankruptcy saga continues to unfold.

In May 2024, FTX proposed a reorganization plan to compensate creditors, marking a potential turning point in the 17-month-old case. The proposal, which could potentially recover 118% of creditors’ original claims, offers a glimmer of hope for many affected by the exchange’s collapse

Additionally, the plan proposes full repayment to all non-governmental creditors, with a 9% interest calculated from the bankruptcy filing date. This proposal comes against a backdrop of dramatic market shifts that have likely played a role in improving the outlook for creditors.

The path to resolution is still complicated, however, as the FTX proposed reorganization plan got backlash from creditors who claimed that the 9% interest rate does not compensate for the true value of the assets lost.

A group of FTX creditors have challenged the proposed reorganization plan in court, arguing that it fails to serve their best interests.

CAHC has filed a objection to the FTX Plan

1) Plan is unconfirmable as a matter of law
2) Includes releases not in interest of the estate
3) Ignores property rights issue
4) Does not satisfy the best interest test pic.twitter.com/rpXxz0tmP2

— Sunil (FTX Creditor Champion) (@sunil_trades) June 6, 2024

The objection aligns with concerns raised by Moskowitz Law Firm and Boies Schiller Flexner LLP, who represent numerous plaintiffs in the multidistrict litigation against FTX.

Their objections focus on potentially misleading recovery figures and the plan’s alleged failure to account for cryptocurrency appreciation since the bankruptcy filing.

Despite initial fears of an $8 billion shortfall in FTX’s books, bankruptcy administrators have made noteworthy progress in asset recovery.

A recent example of this progress is the acquisition of FTX’s independently operated Japanese unit by local crypto exchange Bitflyer, further contributing to the pool of recoverable assets.