According reports, cryptocurrency exchange FTX is fighting tooth and nail to devalue claims on certain digital tokens, dubbed “Sam Coins,” entangled in an ongoing bankruptcy saga. The exchange contends that these tokens, associated with incarcerated FTX founder Sam “SBF” Bankman-Fried, should be rendered worthless, sparking a contentious legal battle with investors.
During the March 26 court session presided over by Delaware bankruptcy judge John Dorsey, FTX’s legal team led by attorney Brian Glueckstein made a fervent plea to discount or reduce claims on tokens linked to prominent projects like Maps (MAPS), Oxygen (OXY), Serum (SERUM), and Boba (BOBA). Glueckstein argued that these assets should be valued at zero or heavily discounted, citing complexities surrounding their association with SBF.
However, investors vehemently opposed FTX’s stance, asserting that their holdings in these tokens amounted to hundreds of millions of dollars. They presented comprehensive calculations in court to substantiate their claims, challenging FTX’s assertion that the tokens should be deemed worthless.
FTX’s valuation expert, Sabrina Howell, highlighted the exchange’s substantial holdings in OXY and MAP tokens, emphasizing the protracted timeline it would take to liquidate them. Conversely, creditor attorney Kurt Gwynne accused FTX of enlisting experts to unfairly undervalue the assets, disputing the validity of their estimates.
FTX stood firm on its position, arguing that claims associated with MAPS and OXY tokens, valued over $600 million, should be considered null. Similarly, claims linked to SERUM tokens, amounting to $509 million, were proposed to be discounted by approximately 58%.
In a compelling rebuttal, investors urged the court to reject FTX’s estimates, insisting that the collective value of the “Sam Coins” exceeded $1.1 billion. However, Judge Dorsey expressed skepticism over quantifying the value of cryptocurrency, characterizing digital assets as inherently devoid of value beyond market sentiment.
Acknowledging the complexity of the matter, Judge Dorsey announced his intention to deliberate further before issuing a ruling on the contentious issue of assessing the disputed crypto assets’ value. The courtroom drama underscores the high stakes and profound uncertainties surrounding the intersection of cryptocurrency, bankruptcy proceedings, and investor claims, leaving both parties anxiously awaiting the judge’s decision.
