- Lawyers for bankrupt FTX seek to invalidate customer claims for tokens like MAPS and OXY associated with founder Sam Bankman-Fried
- FTX argues these “Sam Coins” should be valued at zero or heavily discounted as they would take decades to liquidate
- Judge acknowledges difficulty in quantifying crypto values but customers reject proposed $0 valuations for their holdings
The cryptocurrency exchange FTX is seeking to invalidate customer claims related to tokens associated with founder Sam Bankman-Fried in ongoing bankruptcy proceedings.
FTX Lawyers Argue Tokens Should Be Worthless
Lawyers for FTX asked a Delaware bankruptcy judge to heavily discount or reduce to zero the value of customer claims for four digital tokens: MAPS, OXY, SERUM, and BOBA. FTX attorney Brian Glueckstein asserted that because FTX held over 95% of MAPS and OXY, it could take decades to liquidate them.
Customers Push Back on ‘Zero’ Valuations
However, FTX customers holding these so-called “Sam Coins” rejected the proposed valuations, claiming the assets are still worth over $1.1 billion combined. Judge John Dorsey acknowledged the inherent difficulty in quantifying cryptocurrency value before taking the matter under advisement.
Background on Disputed Tokens
MAPS and OXY are native tokens for Alameda-backed platforms Maps.me and Oxygen. Both have collapsed over 98% from all-time highs. SERUM is the token for the FTX-backed Serum DEX, down 99.5%.
SBF Controversy Continues
The token dispute comes as jailed FTX founder Sam Bankman-Fried faces fraud charges. Prosecutors proposed a 50-year sentence, but his lawyers argue this unfairly paints him as a “depraved supervillain.”
The Fate of Sam Coins Remains Uncertain
The outcome of FTX’s attempt to invalidate Sam Coin claims could significantly impact creditor repayments. Judge Dorsey admitted cryptocurrencies have no inherent value beyond sentiment. His ruling on estimating the worth of these disputed assets looms large.
