• 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

Pudgy Penguins Partners with Edgen: What PENGU Holders Can Expect in Phase 2

chest

Pudgy Penguins expands its collaboration with Edgen, now offering exclusive rewards to 250,000 PENGU token holders.

user avatarMaria Fernandez

Bitcoin Price Holds Support Despite ETF Outflows

chest

Bitcoin's price remains above key support levels, continuing to follow its long-term upward channel despite significant ETF outflows.

user avatarRajesh Kumar

SafePal Launches Black Friday & Cyber Monday Extravaganza

chest

SafePal has launched a week-long Black Friday and Cyber Monday event with major discounts on hardware wallets and prize lotteries from November 27 to December 3, 2024.

user avatarGustavo Mendoza

Solana Sees 5% Increase Amid x402 Protocol Rally

chest

Solana's price has seen a 5% increase as the x402 protocol experiences a rally.

user avatarMiguel Rodriguez

Innovations Could Solve DeFi Lending Challenges

chest

Innovations such as on-chain credit scoring and decentralized insurance protocols are emerging as potential solutions to the challenges facing DeFi lending.

user avatarArif Mukhtar

DeFi Lending Faces Major Challenges

chest

DeFi lending is facing significant challenges, including overcollateralization and liquidation risks, which undermine its accessibility and fairness.

user avatarLuis Flores

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.