FTX, a cryptocurrency exchange, is seeking to declare its creditors’ “Sam Coins” worthless during its bankruptcy proceedings. NYU Professor Sabrina Howell conducted a valuation analysis on the tokens, including Serum, Maps, and Oxygen. Howell’s research suggested that Serum’s $509 million in claims should be reduced by nearly 60%, while Oxygen and Maps should be devalued to zero since the exchange held most of the tokens. FTX’s attorney, Brian D. Glueckenstein, stated that customers attribute values to the tokens based on a market that does not exist.
FTX creditors have challenged Howell’s analysis, with Maps Vault Attorney Jefferey Torosian calling it illogical. Attorney Kurt F. Glynne, representing nearly $250 million in claims linked to Oxygen and Maps, criticized the data presented by FTX’s attorneys as fundamentally flawed. The battle over the valuation of the “Sam Coins” continues, with FTX customers seeking compensation for the tokens.
The bankruptcy proceedings for FTX have taken a convoluted turn, with U.S. Bankruptcy Judge John Dorsey recently ordering the appointment of an independent examiner to investigate potential conflicts of interest involving the law firm Sullivan and Cromwell. Judge Luis Felipe Restrepo overturned Dorsey’s initial rejection of an independent examiner, citing benefits for the cryptocurrency sector, including shining a light on shady business dealings and undisclosed credit risks. FTX CEO John J. Ray III had previously opposed an independent examiner due to the costs involved.
FTX founder Sam Bankman-Fried was convicted of fraud charges for misappropriating over $8 billion worth of customer funds. Bankman-Fried is scheduled for sentencing on March 28 in Manhattan federal court, with close friends and family appealing to U.S. Judge Lewis A. Kaplan for leniency. Despite the legal troubles facing Bankman-Fried, Serum was trading at $0.062, while Maps and Oxygen were valued at $0.034 and $0.013, respectively. The outcome of the bankruptcy proceedings and the valuation of the “Sam Coins” remain uncertain.
Overall, the situation surrounding FTX’s bankruptcy proceedings and the valuation of the “Sam Coins” is complex and contentious. With conflicting assessments from NYU Professor Sabrina Howell and FTX creditors, the fate of the tokens remains uncertain. The appointment of an independent examiner to investigate potential conflicts of interest adds another layer of complexity to the proceedings. Meanwhile, the legal troubles facing FTX founder Sam Bankman-Fried and the plea for leniency from his close associates further complicate the situation. The cryptocurrency sector is closely watching the developments surrounding FTX as it navigates through its bankruptcy proceedings and seeks to determine the value of the disputed tokens.
