When FTX cryptocurrency exchange went bankrupt, an investor specializing in collapsed businesses brokered a market for profiting from its downfall. The investor connected one of his clients with a financial firm to sell its $100 million FTX claim for 6 cents on the dollar. In a recent sale, a $19 million FTX claim was sold for 68 cents on the dollar, earning the broker nearly $100,000. Hedge funds, investment firms, and investors have taken an interest in trading FTX claims. However, some claim buyers and brokers are facing legal issues for falsifying records and misappropriating funds. The sale of claims is expected to speed up the recovery process, even though hundreds of crypto investors will receive less than what is expected. The recovery could be delayed by a $24 billion claim filed by the IRS, which argues that FTX owes the government income taxes, employment taxes, and penalties from 2018 to 2022. Despite this, speculators are still confident in profiting from the market.
