FTX creditors stand a chance at recovering 100% of lost assets due to potential valuation increases of FTX’s investment holdings, according to creditors’ attorney Kunchou Tsai.
Tsai, who has assisted over 100 clients in filing claims against the failed crypto exchange, points to FTX’s stake in artificial intelligence research company Anthropic as a prime example. FTX invested $300 million into Anthropic in 2021.
With Anthropic potentially reaching a $17 billion valuation in upcoming funding rounds, FTX’s investment could swell to $3-4.5 billion, according to The Block’s reporting. This multibillion dollar return would significantly benefit FTX creditors seeking to recoup losses from the exchange’s collapse.
Anthropic is just one investment FTX made with customer funds that appears primed for immense growth. Other holdings like messaging app Signal and quant trading firm Alameda Research also stand to substantially increase in value.
As these investments mature, creditors are positioned to recover potentially the full value of missing assets. Tsai estimates the total asset recovery rate could reach 100% or more thanks to FTX’s stakes capturing outsized returns.
However, the path to make creditors whole remains complex given FTX’s bankruptcy proceedings. How proceeds from FTX investment holdings will be distributed is still uncertain.
Nonetheless, the upside case for FTX’s investment portfolio painted by Tsai provides a glimmer of hope for victims seeking restitution. With billions in potential gains on the line, creditors have reason to closely monitor valuations of FTX’s holdings as key milestones approach.
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