FTX Customers Seek Equity for 'Sam Coins' Amid Bankruptcy

FTX customers holding "Sam Coins" (Serum, MAPS, OXY) claim they are undervalued by the bankrupt crypto company's experts and should be worth hundreds of millions of dollars, urging a judge to override the "nearly worthless" conclusion.

FTX Customers Demand Equitable Treatment for 'Sam Coins'

In the ongoing bankruptcy proceedings of collapsed crypto giant FTX, a group of customers is lodging significant claims against the estate, seeking a higher valuation for three digital tokens known as "Sam Coins."

These customers contend that the tokens, namely Serum (SRM), MAPS, and OXY, deserve a valuation in the hundreds of millions of dollars, despite the company's experts concluding that they are "nearly worthless."

The genesis of the dispute lies in the involvement of FTX's co-founder, Sam Bankman-Fried, who created Serum and gained control of the other two tokens. According to court documents, Bankman-Fried orchestrated deals involving these tokens, raising questions about their true value.

At the time of FTX's bankruptcy filing in November 2022, the company held a vast majority of the "Sam Coins," far exceeding the amount that could be sold in the open market. FTX's advisers have proposed a nominal valuation of mere cents per token, arguing that any value beyond this is speculative.

However, the token holders have vehemently opposed this assessment, presenting their own valuation methods in court. They argue that the tokens' association with Bankman-Fried should not diminish their intrinsic value.

The legal showdown between the token holders and FTX is set for its final arguments on Tuesday, with US Bankruptcy Judge John Dorsey presiding over the proceedings in federal court in Wilmington, Delaware.

FTX's lawyers maintain that other former customers with investments in traditional assets such as US dollars and Bitcoin will likely receive full reimbursement. The focus of the "Sam Coins" dispute, therefore, is on the treatment of customers who invested in these tokens.

Bankruptcy officials have alleged that the "Sam Coins" played a central role in Bankman-Fried's fraudulent scheme, which involved improperly transferring customer assets to a hedge fund under his control. These funds were subsequently used for high-risk investments, political donations, and lavish real estate purchases, ultimately leading to FTX's collapse.

The tokens' value has fluctuated in recent months. SRM has declined by over 5% in the past 24 hours, while MAPS has gained 9.4% during the same period. OXY has experienced a notable surge of 15% within the given timeframe.

The outcome of the FTX bankruptcy proceedings will have significant implications for the crypto industry and its participants. The court's decision on the valuation of the "Sam Coins" will set a precedent for the treatment of token holders in similar situations.

As the legal proceedings unfold, it remains to be seen whether the token holders will succeed in their pursuit of a higher valuation or if their claims will ultimately be dismissed.