Been noticing several providers offering competitive rates OTC for Alameda claims.
Seems that the current pricing for OTC claims is about 58-68% and trending up as quoted by cherokee aquisition (https://claims-market.com/)
Im curious if theres a certain number here that would make it more sensible to sell the claim rather than pursue our own actions and pay legal fees that rack up. Would love to hear the team’s take on this.
Does TrueFi have any direct exposure to Alameda? As I recall, all their loans were repaid fortunately.
@capitalm and @Codeknight Thank you both for your questions. Taking those questions in reverse order they came in:
The Alameda Single Borrower Pool that is on TrueFi (obviously closed and no longer active) had a meaningful loan (approximately $7.5 million including principal and interest due) to Alameda at the time of the bankruptcy. TrueFi did not as a protocol/DAO have any direct exposure to Alameda.
Acting as agent for the lenders to assist with the recovery of the claim (which was filed with bankruptcy court handling the combined FTX and Alameda cases), Archblock as been closely monitoring the OTC claims market for Alameda. We do have a well informed and expertly advised by outside counsel point of view on the trade off of selling the claim for the lenders versus waiting until a later pre-distribution time or waiting until distribution to claimants. We will keep the community (and by extension the lenders to the Alameda Single Borrower Pool) updated on our thoughts and actions as time progresses. We have not at this time moved toward selling the Alameda claim on behalf of the lenders.
According to the current agreement, maintaining the claim incurs a monthly fee of $15,000, which is paid by the debt holders. At present, the over-the-counter (OTC) claim price ranges between 108% and 120% of the face value. By selling the claim now, we can secure these funds and avoid the ongoing $15,000 monthly fee. If the process continues for another two years, the total fee would amount to $360,000 ($15,000 x 24 months). Given this significant cost, it may be more advantageous to sell the claim now rather than wait.
As one of the holders of this pool I am also in favor of this, I emailed Archblock about this last month but I think they want to wait it out.
fwiw the repayment is expected in q4 and from what I understand Archblock believes they can get a higher recovery than secondary market even with legal fees.
I also wish we had a bit more communication between the debt holders as we are the ones paying for the legal fees but at same time im happy that they are taking care of the process.
After speaking with people closely following the bankruptcy proceedings, it seems highly unlikely that distributions will begin in Q4. The most sensible course of action now is to either stop the contract, which is currently costing debt holders $15K per month, or sell the claim as soon as possible. What’s also concerning is that the $15K monthly cost is coming out of debt holders’ pockets, and TrueFi has not made this transparent. In fact, the only way I found out about this $15K agreement was through this forum—I never received an email or notification asking if I was okay with it.
you need to open your friend request settings on discord
Agree with this approach. However, as one of the holders, is there anything we can do now? cc @billwolf
