• 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

Farside Investors Emphasizes Strict Editorial Standards

chest

Farside Investors has released a report that emphasizes its commitment to a strict editorial policy focused on accuracy, relevance, and impartiality.

user avatarNguyen Van Long

Meta is Set to Launch a New Prediction Market App Named 'Arena'

chest

Meta is reportedly developing a new app called Arena that will allow users to make predictions on events using points instead of real-world cash.

user avatarJesper Sørensen

Meta's Previous Ventures into Crypto and Prediction Markets

chest

Meta has a history of engaging with crypto technologies, including its previous attempt at a prediction market with the Forecast app, which was launched in 2020 and shelved in 2022.

user avatarSatoshi Nakamura

TurboFlow Secures $6 Million Seed Funding from Pantera Capital

chest

TurboFlow has successfully raised $6 million in a seed funding round led by Pantera Capital, indicating strong investor interest in platforms that integrate prediction markets and trading infrastructure.

user avatarRajesh Kumar

Securitize and tZERO Enter Legal Battle Over Tokenized Securities

chest

Securitize and tZERO are currently engaged in a legal dispute in Delaware concerning the infrastructure for tokenized securities.

user avatarLucas Weissmann

Ted Pillows Releases New Report on Liquidation Data

chest

Ted Pillows has released a new report based on liquidation data, offering valuable insights into current financial trends.

user avatarFilippo Romano

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.