Key Takeaways
- FTX customers holding SERUM, MAPS, OXY claim that the assets are collectively worth over $1.1 billion.
- FTX LAWYERS argued for significant discounts or zero valuation on these tokens, citing challenges in liquidating them
Investors in the embattled cryptocurrency exchange FTX are embroiled in a legal tussle over the valuation of digital tokens associated with its co-founder, Sam Bankman-Fried, who is currently in jail. At the heart of the matter are claims for so-called “Sam Coins” – tokens linked to Bankman-Fried and his ventures, including Serum, MAPS and OXY.
In a recent court hearing, lawyers representing FTX argued for significant discounts or zero valuation on these tokens, citing challenges in liquidating them and asserting that the market values attributed by customers are unrealistic. FTX’s valuation expert estimated that liquidating assets like OXY and MAP tokens, in which the firm holds a substantial majority, could take decades.
However, FTX customers holding these tokens contested these valuations, claiming that the assets are still collectively worth over $1.1 billion. They urged the judge overseeing the bankruptcy case to overturn FTX’s assessments and demand a higher valuation.
MAPS, the native token for the Web3 travel platform Maps.me, has plummeted by 98% from its peak, trading at $0.03, while OXY, associated with the Oxygen DeFi brokerage, has experienced a similar decline, currently trading at $0.08. SERUM, linked to the FTX-backed decentralized exchange, has seen a staggering 99.5% drop from its peak value, now valued at $0.06 per token.
FTX disclosed having approximately $6.4 billion in cash to reimburse creditors, potentially enabling full repayment of many claims. The price for these claims in the online marketplace has skyrocketed from 10% to 97% of their initial value since November 2022, signaling increased investor demand.
Before FTX encountered financial turmoil in late 2022, the tokens in question peaked at substantial values, with Serum reaching $13.78, MAPS at $2, and OXY at $4.16. Court filings suggest that Bankman-Fried, during his tenure as FTX CEO, played a pivotal role in creating Serum and controlling the other two tokens.
Scheduled for sentencing on March 28, Bankman-Fried faces consequences following his October conviction in connection with FTX downfall. Prosecutors have suggested a 40 to 50-year prison term, contrasting with his attorneys’ plea for 6 1/2 years or less.
