Appraisal Economics has valued bankruptcy claims on the assets of FTX Trading Ltd. FTX was a large cryptocurrency exchange and trading platform that abruptly collapsed and filed for bankruptcy and whose CEO, Sam Bankman-Fried, was found guilty of fraud and money laundering. The bankruptcy trustee is working to find and collect FTX assets to provide to FTX’s clients and victims. Those who are unable or unwilling to wait for the ultimate outcome of the bankruptcy proceedings can sell their claims to investors with more risk tolerance. The value of a bankruptcy claim depends on due diligence regarding the validity and likelihood that the claim will be accepted by the bankruptcy trustee, the claim’s seniority and preference amounts, the value and volatility of the underlying assets, asset recovery expenses, and the expected time until the bankruptcy estate is settled. Appraisal Economics valued the FTX bankruptcy claims for gift and estate tax planning purposes.
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