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CoinShares sold £26.6 million of FTX claiming a profit
CoinShares, a European investment firm focused on digital assets, sold its claims against bankrupt cryptocurrency exchange FTX with a net recovery rate of 116%. Announced today (Monday), the company will receive a return of £31.32m on a £26.6m claim after customary closing conditions.
“The resolution of the FTX situation has been very favorable for CoinShares,” said CoinShares CEO Jean-Marie Mognetti.
“This exceptional recovery rate is a testament to the diligence and expertise of our team. We remain committed to building on this success to reward our shareholders and drive further growth and innovation in the digital assets sector.”
However, CoinShares did not name the person or entity it sold it to FTX affirmations.
The company also emphasized reinvesting recovered proceeds into growth opportunities. It also highlighted how claims settlement has provided a greater return to its shareholders.
FTX moves towards repaying creditors
Interestingly, the settlement of the claim occurred only one month after FTX’s bankruptcy management present a plan to repay creditors. Under the proposed plan, creditors with claims of $50,000 or less, or 98% of creditors, will be eligible to receive 118% of their claims. Additionally, all non-government creditors would also receive their claims in full, along with 9% interest to be calculated from the date of bankruptcy filing.
The distribution plan came 17 months after the cryptocurrency exchange filed for bankruptcy. At the time of the bankruptcy filing, Bitcoin was trading at around $16,000, but recently peaked above $72,000 earlier this year and, as of this writing, is trading at over $62,000.
Meanwhile, a group of FTX creditors has gone to court oppose the proposed reorganization planarguing that this was not in their interest.
Although FTX’s condition appeared very bleak at the time of its bankruptcy, with an $8 billion hole in its books, the bankruptcy administrators have recovered significant assets held by the cryptocurrency exchange. Recently, the Japanese cryptocurrency exchange Bitflyer has acquired the local unit of FTXwhich operated independently of its tainted parent.
CoinShares, a European investment firm focused on digital assets, sold its claims against bankrupt cryptocurrency exchange FTX with a net recovery rate of 116%. Announced today (Monday), the company will receive a return of £31.32m on a £26.6m claim after customary closing conditions.
“The resolution of the FTX situation has been very favorable for CoinShares,” said CoinShares CEO Jean-Marie Mognetti.
“This exceptional recovery rate is a testament to the diligence and expertise of our team. We remain committed to building on this success to reward our shareholders and drive further growth and innovation in the digital assets sector.”
However, CoinShares did not name the person or entity it sold it to FTX affirmations.
The company also emphasized reinvesting recovered proceeds into growth opportunities. It also highlighted how claims settlement has provided a greater return to its shareholders.
FTX moves towards repaying creditors
Interestingly, the settlement of the claim occurred only one month after FTX’s bankruptcy management present a plan to repay creditors. Under the proposed plan, creditors with claims of $50,000 or less, or 98% of creditors, will be eligible to receive 118% of their claims. Additionally, all non-government creditors would also receive their claims in full, along with 9% interest to be calculated from the date of bankruptcy filing.
The distribution plan came 17 months after the cryptocurrency exchange filed for bankruptcy. At the time of the bankruptcy filing, Bitcoin was trading at around $16,000, but recently peaked above $72,000 earlier this year and, as of this writing, is trading at over $62,000.
Meanwhile, a group of FTX creditors has gone to court oppose the proposed reorganization planarguing that this was not in their interest.
Although FTX’s condition appeared very bleak at the time of its bankruptcy, with an $8 billion hole in its books, the bankruptcy administrators have recovered significant assets held by the cryptocurrency exchange. Recently, the Japanese cryptocurrency exchange Bitflyer has acquired the local unit of FTXwhich operated independently of its tainted parent.