FTX Claims Lure Some Big Players in Distressed Market
The remains of Sam Bankman-Fried’s former empire FTX Group are drawing interest from some of the largest names in distressed investing, in a daredevil bet that heavily discounted creditor claims on the bankrupt cryptocurrency conglomerate will ultimately pay off.
Baupost Group and Oaktree Capital Management are among those that have inquired about the claims of FTX customers with assets stuck on the exchange, said a person familiar with the matter who declined to be identified as the discussions were private.
Meanwhile Citigroup Inc., Cowen Inc. and Seaport Global Holdings LLC are among those that are trying to act as middlemen for the nascent market, according to people familiar with the matter who declined to be identified as they aren’t authorized to speak about the business.
“Many of the major participants in the distressed debt market are focused on this,” said Joe Femenia, global head of distressed and special situations at Jefferies Financial Group Inc. The investment bank is also among the Wall Street firms looking to act as a broker for FTX claims, he said.