• 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

Binance Implements New Execution Rule to Enhance Market Stability

chest

Binance announces the introduction of the Spot Price Range Execution Rule (PRER) to prevent user orders from being executed at abnormal prices during extreme market conditions.

user avatarAyman Ben Youssef

Bitcoin Approaches Critical Distribution Phase in Market Cycle

chest

New analysis indicates Bitcoin is nearing a stage where distribution risks may increase, highlighting the importance of monitoring the next phase of its market cycle.

user avatarTando Nkube

NYT Journalist Claims to Have Unmasked Bitcoin's Creator

chest

A New York Times journalist has identified Adam Back as a potential candidate for the identity of Bitcoin's creator, Satoshi Nakamoto, after extensive research.

user avatarKofi Adjeman

Investigation Reveals Connections Between Adam Back and Satoshi Nakamoto

chest

The investigation highlights various connections between Adam Back and Satoshi Nakamoto, including shared ideologies and technical designs.

user avatarNguyen Van Long

Ripple's XRP Ledger Struggles in Real World Assets Market

chest

Ripple's XRP Ledger is not leading in the Real World Assets market, falling behind in distributed value and user count.

user avatarSatoshi Nakamura

UBS and Major Swiss Banks Collaborate on Swiss Franc Stablecoin Initiative

chest

UBS collaborates with five major Swiss banks to explore a Swiss franc-based stablecoin through a digital sandbox environment.

user avatarJesper Sørensen

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.