FTX Creditor Tokenizes Bankruptcy Claim, Sells It as an NFT

One creditor of bankrupted cryptocurrency exchange FTX decided not to sit and wait to get their money back.

Instead, the unidentified creditor of a FTX bankruptcy claim worth $31,307 converted the claim to a token on the Ethereum blockchain and sold it to a buyer who on June 23 used the token to borrow $7,500 worth of stablecoin USD, according to nonfungible token lending platform Arcade.

A number of high-profile bankruptcies in the digital-asset space, not just the FTX insolvency, has left millions of investors frustrated over how much money they’ll be able to recover. Solutions to temporarily ...