-Hundreds of users of Celsius, FTX, and Voyager have chosen to sell their bankruptcy claims for a fraction of their value rather than go through a lengthy bankruptcy process.
-Firms specializing in buying bankruptcy claims have taken advantage of those wishing to move on by offering deals.
-Mt. Gox serves as a reminder of the long and drawn-out process of bankruptcy administration, with users only now preparing to receive their remaining assets eight years later.
Investors are currently looking to take advantage of those wishing to avoid a drawn-out bankruptcy process by offering to purchase their claims for a fraction of their value. This has been seen with recent customers of Celsius, FTX, and Voyager, who have opted to sell their claims rather than having to wait out the lengthy bankruptcy process.
Firms specializing in acquiring bankruptcy claims, such as Cherokee Acquisition and Xclaim, have taken advantage of those who wish to move on. Cherokee Acquisition reported that creditors holding over a billion dollars with FTX, and $100 million at Celsius, have approached them for deals. Similarly, Xclaim have offered their services as a marketplace for buyers and sellers of bankruptcy claims, allowing them to negotiate a deal.
The example of Mt. Gox serves as a reminder of the long and drawn-out process of bankruptcy administration. The Bitcoin exchange shut down in 2014 after being hacked for a reported 650,000 to 850,000 BTC, with users only now preparing to receive their remaining assets eight years later. This uncertainty and the potential for a long wait, has led to some creditors being willing to sell their claims at a loss.
For those who do decide to go through the bankruptcy process, there is no guarantee of a successful outcome. The assets remaining at Celsius, FTX, and Voyager are unknown, and outcomes can vary drastically depending on the complexity of the case.
With the potential of a lengthy wait and no guarantee of a successful outcome, it is unsurprising that some customers have opted to move on by selling their bankruptcy claims for a fraction of their value. This has allowed them to put the ordeal behind them and move on with their lives, while also benefiting those looking to take advantage of the situation.