FTX has requested that the bankruptcy court dismiss investor claims on certain cryptocurrencies closely linked to its former CEO, Sam Bankman-Fried. The legal team for FTX sought the reduction of customer claims for the tokens of Maps.me, Oxygen, Serum, and Boba during a hearing. Their argument hinges on the assertion that these tokens, known collectively as “Sam Coins,” hold no real market value.
FTX’s Legal Argument on Token Valuation
FTX’s attorney, Brian Glueckstein, presented an analysis suggesting that the market for these tokens is non-existent and thus their value should be nullified. The firm’s valuation expert indicated that fully liquidating the tokens in question would be a process spanning decades, reinforcing the notion of their diminished worth.
Based on expert assessments, FTX has argued that MAPS and OXY tokens, which were once predominantly held by the firm and its affiliates, are effectively worthless despite currently being valued at over $600 million. SERUM tokens, on the other hand, should see a reduction of approximately 58% from their $509 million valuation.
Customer Opposition to FTX’s Stance
Despite FTX’s stance, investors holding these tokens are pushing back against the proposed devaluation. They argue that the combined assets are still worth more than $1.1 billion and are requesting that the court reject the valuations presented by FTX’s attorney.
The tokens, which were supported by Alameda Research and FTX, have experienced significant declines in value since their peak, with drops ranging from 98% to 99.5%. Concurrently, Sam Bankman-Fried faces legal repercussions, including potential lengthy prison sentences for multiple fraud charges in the aftermath of FTX’s collapse.