• Dapps:16.23K
  • Blockchains:78
  • Active users:66.47M
  • 30d volume:$303.26B
  • 30d transactions:$879.24M

FTX’s Legal Argument on Token Valuation

user avatar

by Giorgi Kostiuk

2 years ago


FTX has requested the dismissal of investor claims on certain cryptocurrencies related to its former CEO, Sam Bankman-Fried. The legal team for FTX argued during a hearing to reduce customer claims for the tokens of Maps.me, Oxygen, Serum, and Boba. They claim that these tokens, known as “Sam Coins,” do not have any real market value.

FTX’s attorney, Brian Glueckstein, presented an analysis indicating the tokens have no market and proposed their value be set to zero. The firm's valuation expert explained that liquidating these tokens would take decades, emphasizing their reduced value.

The argument made by FTX suggests that MAPS and OXY tokens, mainly owned by the firm and its affiliates, are essentially worthless despite being valued at over $600 million. SERUM tokens should reportedly be reduced by around 58% from their $509 million valuation.

Customer Opposition to FTX’s Stance

Investors holding these tokens oppose FTX’s proposal to devalue them. They claim the combined assets continue to be worth over $1.1 billion and ask the court to dismiss FTX’s valuations.

Alameda Research and FTX supported the tokens when they saw significant drops in value ranging from 98% to 99.5%. Sam Bankman-Fried is facing legal consequences, potentially including extensive prison sentences for numerous fraud charges following FTX’s collapse.

0

Rewards

chest
chest
chest
chest

More rewards

Discover enhanced rewards on our social media.

chest

Other news

Stellar Partners with LayerZero to Enhance Blockchain Interoperability

chest

Stellar partners with LayerZero to enhance blockchain interoperability, connecting with over 150 blockchains for improved cross-border payments.

user avatarSatoshi Nakamura

XLM Price Holds Near Key Support Amid Partnership News

chest

XLM is trading near a key support level of $0.22, with potential for a bullish breakout following Stellar's partnership with LayerZero.

user avatarJesper Sørensen

ALT5 Sigma Faces Audit Controversy and Nasdaq Delisting Risk

chest

ALT5 Sigma faces scrutiny due to its auditor operating without an active license, risking Nasdaq delisting and financial reporting delays.

user avatarNguyen Van Long

Bitwise Files Registration for Spot SUI ETF.

chest

Bitwise Asset Management has filed a registration statement with the SEC to launch a spot ETF for the SUI token, aiming to provide regulated exposure through traditional stock markets.

user avatarDavid Robinson

Ice Open Network to Launch Tokenized Communities and PUMPit Extension

chest

Ice Open Network is set to launch its Tokenized Communities framework on BNB Chain, allowing user profiles and posts to be represented as tokens, along with the PUMPit Chrome extension for direct token trading on X.

user avatarZainab Kamara

Bitcoin and Ether Prices Surge as Risk Appetite Grows

chest

Bitcoin and Ether prices have surged as market risk appetite increases.

user avatarRajesh Kumar

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.