CoinShares, a European digital asset-focused investment company, has sold its claim from bankrupt crypto exchange FTX at a net recovery rate of 116 percent. Announced today (Monday), the company will receive a return of £31.32 million on a £26.6 million claim after the customary closing conditions.
“The resolution of the FTX situation has been highly favourable for CoinShares,” said the CEO of CoinShares, Jean-Marie Mognetti.
“This exceptional recovery rate is a testament to the diligence and expertise of our team. We remain dedicated to leveraging this success to reward our shareholders and to drive further growth and innovation within the digital asset industry.”
However, CoinShares did not name the person or entity to whom it sold its FTX claims.
The company further highlighted reinvesting the recovered proceeds in growth opportunities. It also pointed out how the claim settlement provided an increased return to its shareholders.
FTX Moving Towards Refunding Creditors
Interestingly, the claim settlement came only a month after the bankruptcy management of FTX put forth a plan to repay creditors. Under the proposed plan, creditors with $50,000 or less in claims, which is 98 percent of the creditors, will be eligible to receive 118 percent of their claims. Further, all non-governmental creditors would also receive their claims in full, along with a 9 percent interest to be calculated from the date of the bankruptcy filing.
The distribution plan came 17 months after the crypto exchange filed for bankruptcy. At the time of the bankruptcy filing, Bitcoin was trading at about $16,000, but it recently peaked at above $72,000 earlier this year and is trading at over $62,000, as of press time.
Meanwhile, a group of FTX creditors moved to court to object to the proposed reorganisation plan, claiming that it was not in their interest.
Although the condition of FTX looked very grim at the time of its bankruptcy, with a hole of $8 billion in its books, the bankruptcy administrators recovered substantial assets held by the crypto exchange. Recently, the Japanese crypto exchange Bitflyer acquired the local unit of FTX, which operated independently from its tainted parent.