Can You Sell a Partial FTX Claim?

Short answer: a bankruptcy claim may be transferred in part. For an FTX transaction, the safer way to describe the deal is that the seller assigns a precisely defined portion of specified claim rights under a written Sale and Assignment of Claim, or SAC. The seller retains only what the agreement leaves outside the assignment.

This precision matters. “Sell 60%” can refer to 60% of the allowed claim amount, 60% of specified future distributions, or another contractual measure. It does not automatically mean the seller receives 60% of face value in cash. Before signing, both sides should be able to answer four questions from the documents: which claim is involved, how the assigned portion is measured, which payments are included, and which rights remain with the seller.

What a Partial Sale Actually Divides

A partial sale should identify the original claim and define the transferred portion by a percentage, a fixed amount, or another unambiguous formula. The assignment should also address distributions already made, pending or forfeited, because a percentage of the original claim is not necessarily the same as a percentage of the unpaid economic position today.

Keep these items separate:

• Claim amount. The claim or scheduled amount used to identify and measure the position.
• Assigned share. The exact portion of the claim rights transferred under the SAC.
• Purchase-price basis. The amount to which the agreed price percentage is applied.
• Prior distributions and forfeitures. Amounts already paid or no longer available must be reconciled before future value is estimated.
• Retained rights. The rights outside the assignment, described by the agreement rather than assumed from a headline percentage.

A Documented Partial FTX Claim Transfer: 14.29%

A Notice of Partial Transfer filed on July 8, 2024 identifies 14.29% of a claim as the assigned portion. The percentage appears in the claim table and the accompanying evidence of transfer: D.I. 19726 — open PDF, pages 2 and 4.

This filing is direct evidence that a partial assignment was documented in the FTX case. Its limits are just as important: 14.29% is the assigned share, not the purchase price. The filing does not disclose the seller's cash proceeds, establish a market price, or guarantee acceptance of a different transaction.

How the Partial-Transfer Process Works

1. Reconcile the current position. Confirm the claim identifier, class or status, relevant amount, prior distributions, forfeitures and any earlier transfers.
2. Define the sale perimeter. State the assigned percentage or amount and identify the payment rights, claims and proceeds included in the assignment.
3. Calculate net proceeds. Confirm the price basis, agreed percentage, payment currency, timing and every seller-paid fee or deduction.
4. Review and sign the SAC. Read the representations, repurchase or indemnity provisions, cooperation duties and treatment of the retained portion. Our SAC guide explains the main clauses.
5. Submit the transfer package. Under FTX's claim-sale guidelines, Kroll validates the transfer before sending notice. That notice starts the 21-day objection period.
6. Keep the closing record. Preserve the signed SAC, proof of payment, transfer notice and later record showing how the assigned and retained interests are reflected.

A filing, validation notice and contractual closing are related but distinct events. Use the documents to identify the effective transfer and payment conditions in the actual deal.

How to Calculate a Partial-Sale Offer

The clean calculation is:

Illustrative example, not a quote: assume the price basis is a $100,000 claim amount, the seller assigns 60%, and the buyer pays 80% of the assigned $60,000. Gross proceeds are $48,000. The seller retains the rights outside the 60% assignment; that retained position is not $40,000 in immediate cash and its eventual value depends on the governing documents, remaining distributions and eligibility.

Ask the buyer to show the calculation in dollars. If the claim has already received a distribution, confirm whether the offer applies to original face amount, remaining unpaid value or another defined basis. Two offers with the same “80% price” can produce different proceeds if they use different bases or deductions.

What Happens to the Portion You Keep?

The retained portion is often called the residual or stub. Its scope comes from the SAC and the resulting transfer record. Do not rely on the informal phrase “I keep 40%” when the agreement contains broader language assigning distributions, causes of action, interest or other proceeds.

The retained position may remain subject to KYC, distribution-provider requirements, objections, forfeiture rules and later case developments. A partial sale does not cure an existing eligibility problem. It also does not, by itself, prove how a future distribution will be routed. Confirm the record after the transfer and reconcile every later payment against the assigned and retained rights.

A later sale of the residual would be a new transaction with its own eligibility review, price and documents. Do not assume today that a future buyer will accept it or that future pricing will improve.

Partial Sale vs Full Sale vs Holding

Compare the options using the same economic scope and the same date. For the sale options, use net proceeds after costs. For the hold option, count only unpaid rights that remain available and account for timing, eligibility and case risk. The FTX claim value guide explains the price basis; the worked sell-or-wait example shows how timing changes the comparison.

Partial-Sale Checklist

• Claim number or customer code, relevant FTX entity, class and current status.
• Original claim amount and the amount still relevant after prior payments or forfeitures.
• Exact assigned percentage or amount and exact retained percentage or amount.
• Purchase-price basis, price percentage, currency, deductions and payment date.
• Treatment of past, pending and future distributions and any disputed proceeds.
• Representations, indemnities, repurchase triggers and post-closing cooperation duties.
• Who submits the transfer, who receives Kroll notices and how an objection will be handled.

Use the FTX claim sale document checklist to gather the supporting records. Qredax can review the position and quote the portion it is prepared to purchase; any offer remains subject to documents and eligibility.

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