The current claim pricing of FTX has seen a major surge, reaching a maximum of 55%, compared to as low as 6% in November last year.
According to data provided by Claims Market, the bid and ask prices for FTX claims are currently quoted at 52% and 55%, respectively.
In the context of a claims market, the terms “bid” and “ask” refer to the prices at which participants are willing to buy or sell claims.
The bid represents the highest price that a buyer is willing to pay for a particular claim, indicating the demand for the claim at that price point.
Bidders are essentially stating the maximum amount they are willing to pay to acquire the claim.
On the other hand, the ask represents the lowest price at which a seller is willing to sell their claim.
In comparison, Celsius claims stand at approximately 35% to 40%, Genesis at around 50%, Alameda at 10% to 15%, and 3AC at a modest 7% to 9%.
Surge in FTX Claims Attributed to Skyrocketing AI Valuations
The surge in FTX’s claim pricing can be attributed to the skyrocketing valuation of Anthropic, the artificial intelligence (AI) company it has previously invested in.
At the end of September, Amazon pledged a staggering $4 billion to support Anthropic.
Prior to Amazon’s investment, Google had already injected $300 million into the AI startup.
Former FTX CEO Sam Bankman-Fried (SBF) and his senior executives had infused $500 million into Anthropic before the involvement of Amazon and Google.
On October 4, the “FTX 2.0 Coalition,” a consortium of FTX creditors, highlighted the potential for SBF’s investment in Anthropic to potentially provide full reimbursement to FTX’s customers and clients.
The discussion gained momentum following Amazon’s significant injection of $4 billion into Anthropic.
Further positive news emerged on October 27 when reports confirmed that Google was pledging an impressive $2 billion to Anthropic.
While the post-valuation figures remained undisclosed, early estimates predicted a valuation ranging from $20 billion to $30 billion.
SBF Likely to Face Decades in Prison
Despite the positive developments surrounding the investments in Anthropic, U.S. prosecutors, who have charged SBF with fraud, maintain that the potential benefits for FTX’s customers should not overshadow the charges SBF is facing.
In the early stages of the trial, prosecutors attempted to exclude the Anthropic investment from the proceedings.
As reported, Bankman-Fried is potentially facing decades in prison when sentenced in March.
However, Caroline Ellison, CEO of Alameda Research, Gary Wang, co-founder of FTX, and Nishad Singh, FTX engineering chief, are likely to receive little to no prison time for their cooperation.
All three admitted to participating in fraudulent activities under Bankman-Fried’s direction, involving the transfer of billions of dollars in FTX customer funds to Alameda, a hedge fund mostly owned by Bankman-Fried.
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