Ikigai, an asset management firm, has sold its claim in the bankruptcy proceedings of cryptocurrency exchange FTX. The firm revealed that a majority of its hedge fund’s assets were on FTX when it collapsed. The Chief Investment Officer of Ikigai, Travis Kling, stated that the firm sold a $65 million claim to its FTX funds because the price was higher than expected. While the exact price of the claim sale was not disclosed, reports suggest that some creditors could receive up to 73 cents on the dollar, the highest price since FTX’s collapse in November 2022.

Kling explained that the decision to sell the claim was primarily driven by opportunity cost. The firm wanted to take the cash proceeds from the sale and deploy it into something else that could earn a return. He also mentioned that the slow progress and mishandling of the FTX 2.0 process influenced their decision to sell the claim. Despite the sale, the majority of the capital will remain in the fund.

FTX creditors have been urged to sell their claims, with the advantage for retail investors being the ability to recover some of their missing funds faster. However, those who choose to cash out may miss out on a potentially higher payout once FTX’s bankruptcy case concludes. Several firms, including Cherokee Acquisition and Open Exchange, are offering cash for FTX claims. Additionally, some creditors have pledged their claims as collateral for loans in decentralized finance protocols.

The collapse of FTX has raised questions about the trustworthiness of crypto exchanges. Users and investors are cautious about the potential risks involved and the need for stronger regulations in the industry.

This News Article was automatically generated by Bob the Bot (AI)

Information	Details
Geography	Global
Countries
Sentiment	neutral
Relevance Score	1
People	Travis Kling
Companies	X (formerly Twitter), Cherokee Acquisition, FTX, Ikigai, Open Exchange
Currencies	FintruX
Securities	None