Since FTX’s 2022 implosion, hedge funds had scooped up the rights to customers’ frozen accounts for pennies on the dollar, with five firms alone buying claims with a combined face value of about $2.4b. But collecting these winnings won’t be straightforward. Investors are mired in legal battles with some of the original owners of the claims. They allege those former FTX customers abruptly reneged on trades and are suffering from an age-old affliction: seller’s remorse.
“We have sellers from all over the world that are interfacing with buyers and the bankruptcy court for the first time and have never experienced a U.S. Chapter 11 case,” said Andrew Glantz, chief strategy officer of Xclaim, a platform that has facilitated more than $200 million of FTX claims transactions.
https://www.wsj.com/finance/currencies/hedge-funds-ftx-210b7f73?stream=top