Battle Over ‘Sam Coins’: FTX Customers Demand Millions From Bankrupt Crypto Firm

FTX customers are demanding substantial payouts from the bankrupt crypto firm. These customers claim three digital tokens, known as “Sam Coins,” deserve a higher value despite their association with convicted co-founder Sam Bankman-Fried.

Investors Push For Higher Valuation

According to a Bloomberg report, the investors holding tokens called Serum, MAPS, and OXY are urging US Bankruptcy Judge John Dorsey to override the company’s experts’ conclusion that the tokens are “nearly worthless.” 

Notably, Sam Bankman-Fried, who created Serum and obtained control over the other two tokens, was involved in securing deals related to them, as mentioned in court documents.

When FTX filed for bankruptcy in November 2022, the company held a significant majority of the tokens, far exceeding what could be sold, even without considering the fraudulent activities that led to its collapse, as the company argued in a court filing.

The firm’s advisers have proposed that the tokens should be valued at a minimal amount, possibly just a few cents. However, the token holders argue that this estimate is “flawed” and have presented their valuation method in court, suggesting that the tokens are worth hundreds of millions of dollars. They have filed claims demanding payment based on their calculations.

FTX Customers Prepare For Legal Showdown

FTX’s lawyers state that other former customers will likely receive full reimbursement for their investments on the trading platform before bankruptcy. These customers had invested in US dollars, Bitcoin (BTC), and other assets that still hold value today. 

The case between the customers and FTX is scheduled to reach its final arguments on Tuesday before Judge Dorsey in federal court in Wilmington, Delaware.

Per the report, the “Sam Coins” played a significant role in this fraudulent scheme, as asserted by bankruptcy officials. While these tokens had distinct names, they were colloquially called “Sam Coins” due to their close association with Bankman-Fried.

On the other hand, Sam Bankman-Fried was convicted of fraud for improperly transferring customer assets to a hedge fund under his control. The funds were subsequently utilized for high-risk investments, political donations, and expensive real estate, ultimately leading to the collapse of the FTX empire.

At present, the native token of the exchange, FTT, is trading at $2.15, reflecting a 3% decline in price over the past 24 hours. However, the token has witnessed significant gains in recent months, accumulating a total growth of 65%.

Meanwhile, the three coins associated with Bankman-Fried display varying trends. Serum (SRM) has experienced a decline of over 5% in the past 24 hours and is currently valued at $0.06318. 

On the other hand, MAPS is trading at $0.03549, demonstrating an upward trend of 9.4% during the same time frame. Lastly, Oxygen (OXY) stands at $0.01629, showcasing a notable surge of 15% within the given period.

Featured image from Shutterstock, chart from TradingView.com