Crypto investors are afraid to make a move on cryptocurrency after facing huge losses in the recent FTX collapse. The users of FTX, Celsius Network, and Voyager Digital are selling their claims at very low prices to avoid the lengthy bankruptcy process.
This year is marked as unlucky for the crypto market. Investors and crypto users faced the worst bear markets in the past few months due to the sudden collapse of FTX, Terra, and Celsius Network. More than 1 million investors lost their savings from FTX’s sudden collapse.
Even though the investors faced losses in recent bankruptcies and crypto frauds, they want to sell their claims to get something. Recently Xclaim bankruptcy claims trading marketplace revealed data that more than a hundred investors are ready to sell their claims.
As per the Xclaim website, currently 9,263 claims are listed, with 24 claims on BlockFi, 71 claims on FTX, 95 claims on Voyager and 9073 claims on Celsius. According to the executive, most of the claims from users are in China, Hong Kong and Taiwan.
In an interview with the Wall Street Journal, Xclaim founder Matt Sedigh stated that they are receiving calls from investors and the mentioned platform users. As per The Wall Street Journal, FTX users are interested in selling their claims via Cherokee Acquisition, an investment banking institution.
Earlier, leading credit investment firms are trying to purchase claims from FTX’s users. Apollo Global Management and Attestor are in the race to buy claims. Niche investment firm 507 Capital recently bought several claims from hedge funds.
What went wrong on major cryptocurrency platforms like Celsius and FTX
The FTX Chapter 11 bankruptcy is a barrier to upcoming digital currencies in the crypto market. In the past month, crypto users have been affected due to price fluctuations in the crypto market.
On November 11, the biggest collapse happened in the crypto market. FTX, the world’s second-largest crypto exchange platform, valued at $32 billion (USD), faced a sudden downfall in the crypto market. FTX filed for Chapter 11 bankruptcy.
In June 2022, abiding by the terms and conditions of the crypto market, Celsius froze halted user-withdrawals. Celsius’s platform has nearly 100,000 customers and assets worth approximately $5.5 billion (USD).
As per an official memo released by Celsius, “Due to extreme market conditions, we are announcing that Celsius is pausing all withdrawals, swamp, and transfers between accounts. We are taking this necessary action for the benefit of our entire community to stabilize liquidity and operations while we take steps to preserve and protect assets.”
Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing
Source: https://www.thecoinrepublic.com/2022/12/31/investors-are-selling-their-ftx-celsius-network-and-voyager-digital-claims-at-steep-discounts/