FTX’s attempt to reclaim its assets seem to be paying off as it has successfully snapped up $61 million in FTX claims.
Rise of New Startup Dedicated to FTX Claims
Several FTX customers who were affected by the 2022 implosion felt they had lost their funds. According to a Bloomberg report, one of such persons is Louis d’Origny who stated that he had a lot of money in the bankrupt cryptocurrency exchange and the implosion made him very worried about the likelihood of recovering his funds.
In the months following the implosion of FTX, a group that featured FTX’s former head of product Ramnik Arora together with d’Origny turned the sad situation into an investment venture. According to d’Origny, he was one of the people who bought FTX bankruptcy claims from other affected customers in the few weeks that followed the implosion.
Armed with these FTX claims, he launched about four investments to recoup up to $31 million in claims. This development transformed into a platform called FTX Creditors which has facilitated the purchase of up to $60 million in FTX claims. Arora is a key part of the FTX Creditors platform and also a top executive during his time at the distraught crypto empire.
As FTX head of product, his responsibility included overseeing products for the crypto exchange as well as participating in the company’s investment venture. To a large extent, these FTX investments were reportedly conducted with misappropriated customers’ deposits. For the FTX Creditors team, Arora is handling the engineering aspect.
FTX Creditors to Received 25% to 30% of Claims
The target for FTX Creditors are claimants who had less than $100,000 in the crypto exchange before its implosion.
Once they started buying their FTX claims, it was estimated that each creditors would recover about 25-30% of their dollar on the bankrupt crypto exchange with the average cost for claims purchased through their third fund at 15% on every dollar owed.
“The market for the creditors were pretty appalling and not transparent, risky, full of people making huge margins, and we wanted to make a fast, easy, transparent process for those creditors,” d’Origny pointed out.
A major highlight in the Bloomberg report underscores, d’Origny’s role in joining those that ruled against the proposed restart of FTX.
The post Former FTX Executive Snaps Up $61M In Claims: Report appeared first on CoinGape.
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