FTX Cryptocurrency Pricing Issue: Fairness Under Scrutiny

FTX experienced a discrepancy in cryptocurrency asset pricing during it’s claim window, with major assets, priced below their current market rates.

Major cryptocurrency assets like Bitcoin (BTC), Ethereum (ETH), Solana (SLN), and Binance Coin (BNB) were priced substantially lower than their current market prices when the claim window was opened.

The FTX claim window pricing set is $16,871 for BTC, $1,258 for ETH, $16.24 for SOL, and $286 for BNB, according to Wu Blockchain. The current market rates for Bitcoin ($62,144), Ethereum ($3,424.62), Solaris ($129.96), and Binance Coin ($411.32) are in sharp contrast to these statistics.

Many cryptocurrency holders who had their holdings impacted by FTX’s bankruptcy are worried about the platform’s openness and fairness due to the price discrepancy. A lot of people wanted them to answer for their problems, so they went to X social media site to do it.

Amid criticism, PwC released a statement on its website that provided details about the situation. According to PwC, FTX Digital Markets Ltd. is attempting to merge the estates of FTX Trading Ltd. and its related debtors through a Chapter 11 settlement.

By May 15, 2024, creditors were reminded by FTX’s official liquidator to file their claims electronically. All qualified claims will be denominated in United States dollars when the first interim distribution is projected to be made in late 2024 or early 2025 through the PwC-managed claims site.

Concerning it’s approved investment manager, they have lately released a warning statement. After discovering that some unapproved parties were trying to place bids on behalf of some FTX Debtors, they took preventative action.

In its first-ever monthly update to stakeholders, they used the X platform to let creditors know that the court-appointed investment manager, Galaxy Asset Management, is the only party with authority over the sale of digital assets by FTX Debtors, as required by a bankruptcy court order.

Therefore, no one other than Galaxy Asset Management may process requests to buy or sell. Following this advice was the bankruptcy exchange’s recommendation to all parties involved, particularly institutional buyers and those trying to stay in compliance with regulations.

At a hearing on February 22, the US Bankruptcy Court for the District of Delaware gave FTX the go-ahead to sell its more than $1 billion in Anthropic, an AI company.