Key Points
- CoinShares has secured a 116% recovery rate from its FTX claim, yielding £31.32 million.
- The funds will be used to enhance the company’s financial standing and benefit shareholders and clients.
CoinShares, a digital asset investment firm, has announced a successful resolution of its claim against FTX.
The deal, finalized on June 24, has resulted in a recovery rate of 116% net of broker fees, equating to a total of £31.32 million on a £26.6 million claim.
CoinShares has expressed satisfaction with the outcome, stating that the funds will be used to strengthen its financial position and offer substantial benefits to its shareholders and clients.
Recovery Journey
CoinShares was one of several companies that reported significant exposure to FTX in 2022.
This was following a brief liquidity crisis that led to the exchange’s collapse in November of the same year.
CoinShares has since been actively working to recover the funds and settle its investors.
The company has now successfully completed the sale of its FTX claim.
Although the buyer’s identity has not been disclosed, CoinShares confirmed that the transaction is subject to customary closing conditions.
The recovery will enable the firm to provide increased returns to its shareholders and reinvest in other growth opportunities.
Future Plans
CoinShares plans to use the funds to expand its business offerings within the crypto economy.
The company’s CEO, Jean-Marie Mognetti, has stated that the resolution of the FTX situation has been highly favorable for CoinShares.
Mognetti added, “This exceptional recovery rate is a testament to the diligence and expertise of our team. We remain dedicated to leveraging this success to reward our shareholders and to drive further growth and innovation within the digital asset industry.”
Resilience Amid Challenges
CoinShares has shown resilience even before the FTX collapse.
In August 2022, the company reported a temporary deficit of $21.7 million due to exposure to the Terra (LUNA) blockchain, which collapsed in May 2022 after its algorithmic stablecoin TerraUST depegged from its 1:1 benchmark with the US dollar.
Despite these challenges, CoinShares assured shareholders and customers that it had sufficient funds to continue its operations, thanks to an undisclosed “effective strategy”.
