By
Anisha Pandey
June 28th, 2024
CoinShares International, a leading digital assets investment company based in Europe, has announced the successful sale of its claim against the now-defunct cryptocurrency exchange FTX.
According to an official press release on June 24, the deal promises a recovery rate of 116% net of broker fees, bringing in £31.32 million on a £26.6 million claim. CoinShares said it is satisfied with the outcome of the sale, as it plans to use the funds to improve its financial standing and provide substantial benefits to its shareholders and clients.
Background and Recovery
The digital asset investment firm was among many companies that reported significant exposure to FTX in 2022 when the exchange suffered a brief liquidity crisis, leading to its collapse in November of that year. Since then, CoinShares has been engaged in efforts to recover the funds and settle its investors.
After extensive negotiations, the company has successfully completed the sale of its FTX claim. Although CoinShares did not reveal the identity of the buyer, it confirmed that the transaction is still subject to customary closing conditions. The recovery will enable the firm to offer increased returns to its shareholders and reinvest in other growth opportunities.
Looking Ahead
CoinShares also disclosed that its customers can look forward to “continued innovation and enhanced services” as it plans to leverage the funds to expand its business offerings within the crypto economy.
The company’s CEO, Jean-Marie Mognetti, said the sale of the FTX claims has been very favorable for CoinShares.
“The resolution of the FTX situation has been highly favorable for CoinShares. 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,” said Mognetti.
Resilience and Future Prospects
CoinShares has demonstrated resilience even before the FTX collapse. In August 2022, the company reported its interim second-quarter financial results, which showed a temporary deficit of $21.7 million due to exposure to the Terra (LUNA) blockchain.
The blockchain collapsed in May 2022 after its algorithmic stablecoin TerraUST depegged from its 1:1 benchmark with the US dollar, sending shockwaves through the entire crypto market.
Despite these hurdles, CoinShares assured shareholders and customers that it had ample funds to weather the storm and continue its operations, thanks to an undisclosed “effective strategy”.