In an ongoing bankruptcy case, cryptocurrency exchange FTX sought to discount or reduce the value of certain investors’ claims for “Sam Coins,” closely linked to jailed FTX founder Sam Bankman-Fried (SBF). FTX’s attorneys argued for a significant reduction in the value of digital tokens associated with SBF, including MAPS, OXY, SERUM, and BOBA.
FTX’s attorney, Brian Glueckstein, contended that customer claims for these tokens should be heavily discounted or valued at zero. On the other hand, investors valued their tokens in the hundreds of millions of dollars and presented their calculations in court.
FTX’s valuation expert, Sabrina Howell, concluded that due to FTX holding over 95% of the OXY and MAP tokens, liquidating them would take decades. However, creditor attorney Kurt Gwynne argued that FTX’s experts unfairly quoted low estimates.
FTX asserted that claims associated with MAPS and OXY tokens, valued over $600 million, should be deemed worthless. Claims linked to SERUM tokens, worth $509 million, should be discounted by approximately 58%. In contrast, investors argued that these digital assets, dubbed “Sam Coins,” are collectively worth more than $1.1 billion.
Judge John Dorsey expressed difficulty in quantifying the worth of cryptocurrency, describing digital assets as having “no inherent value” and trading based on sentiment. He indicated that he would consider arguments from both sides before ruling on how to estimate the value of the disputed crypto assets.
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