Crypto Customers Sell Claims at a Loss to Avoid Bankruptcy Wait – WSJ

At least hundreds of customers burned by the collapses of FTX, Celsius Network LLC and Voyager Digital Ltd. are seeking to sell their cryptocurrency claims at deep discounts so they don’t have to wait months or even years to see what they might recover as the platforms move through chapter 11.

Customers and other creditors holding roughly $1 billion in FTX claims and about $100 million in Celsius claims have expressed interest in selling them through an online market run by Cherokee Acquisition, a bankruptcy claims broker and buyer, the firm said.

Nearly 500 users of FTX, Celsius and Voyager have posted claims valued at roughly $126 million for sale on Xclaim Inc., a bankruptcy claims trading startup that recently changed its business to focus on providing a platform to buy and sell crypto claims. Xclaim has so far listed roughly $91.7 million in FTX customer claims, the company said.

Source: Crypto Customers Sell Claims at a Loss to Avoid Bankruptcy Wait – WSJ