Anatomy of a shitcoin abuse: Oxy and Maps claim filing.

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The unraveling FTX saga reads like a twisted corporate thriller – complete with stunning betrayals, missing billions, and mysterious characters.

Central to the mystery is Alex Grebnev, founder of Oxygen and Maps projectsIf you don’t know him, read this post from the guardian.

Grebnev recently filed three $420mm+ in bankruptcy claims against several FTX entities

This, despite his companies reaping huge investments from FTX customers helped by its founder Sam Bankman-Fried.

Let’s dive. 

Who is Alex Grebnev, oxy and maps founder?

At first glance, Alex Grebnev has an impeccable resume

He boasts high-flying roles at Goldman Sachs, Merrill Lynch, and his current venture, Moonshot Capital.

It doesnot take an astute observer to notice that his role as founder of Oxygen and Maps are absent from the experience paragraph of Grebnev’s resume.

This glaring omission raises red flags about his involvement in the firm that extracted tens of millions from FTX before its implosion.

Despite his pedigree from top firms, it appears that Grebnev had an agreement with SBF to enable him to dump on FTX customers by listing his tokens.

This agreement was not free – Grebnev apparently had to pay millions to SBF to make it happen.

Hundreds of millions for no delivery...

Like any slick salesman, the oxygen project relied on lofty promises over tangible proof.

The founder boasted of having a 100-person team of elite developers ready to drive his grand visions.

In reality, former employees revealed Grebnev had virtually nothing close to that staff-force.

Meanwhile, investors still await a product delivery, including famous investor of the crypto-industry like CMS or Kyle SAMANI from MultiCoin Capital.

Grebnev and SBF: Exposing the Toxic Ties For Customers

Following the collapse of FTX, some tweets reveal extensive, questionable financial ties between FTX and Alex Grebnev’s companies.

As revealed by Sunil in the following tweet, at first, SBF used his fame and FTX’s customer base to raise money for Grebnev’s projects Oxygen and MAPS.

In other words, SBF and Grebnev had a deal to “use” FTX customers by funneling money to Grebnev’s projects, which failed to deliver any value.

The two colluded to prop up Grebnev’s ventures, like Oxygen and MAPS, by promoting and dumping tokens on unknowing retail traders.

So the billions that Grebnev claims were invested in his companies essentially stemmed from regular everyday people that SBF misled into a project that never delivered…

Moreover, OXYGEN official twitter handle claims FTX held no equity in MAPS or Oxygen, it did hold a “significant proportion” of their tokens. 

In fact, FTX acted as custodian for over 95% of the total token supply.

Why 95% of the supply were held on FTX? 

It also shows the project entrusted billions in assets to the custody of FTX and SBF despite their lack of transparency. 

How can that custodian relationship be proper corporate governance?

This raises yet an other red flag about potential dumping of tokens on unsuspecting FTX retail traders to prop up the MAPS and OXY ecosystems.

Who would realize the profits?! SBF and Grebnev.

Now with FTX bankrupt, Grebnev is scrambling to protect his projects. 

Wait, to protect his projects or his own interests?

Legal advisors won’t uncover the truth – only Grebnev or SBF can explain the full extent of the MAPS and Oxygen dealings. 

Until then, doubts will persist about this tangled web and who truly benefited at customers’ expense.

Why Grebnev's Bankruptcy Claim Should Be Disallowed

In a short-sighted attempt to recoup losses, Grebnev’s filled a staggering 421M claim, against FTX, Alamada and Cottonwood.

The greedy move has only attracted more intense scrutiny of his dealings with SBF and role at Oxygen and Maps.

As proceedings get underway, a complex legal and ethical dilemma looms large: how to equitably value assets and claims in a fair, consistent manner?

This question intertwines with that of claimant priorities and distribution; valuing holdings and claims significantly impacts creditor recoveries.

Our solution traces back to quantifying assets’ worth.

Traditional fair value accounting actually enables the practices that destabilized FTX, permitting inflated valuations of illiquid assets…

Why does fair value falter?

Fair value aims to measure assets at market-based amounts.

But for illiquid holdings, legitimate markets scarcely exist. Fair value distorts financial truths when questionable assets receive inflated valuations…

With no liquidity, “pure shitcoins” have close to zero realizable value, yet fair value lets them be recorded at improbable amounts… and it propagates through creditor claims. Hence, 3x $420mm claims.

Accounts laden with likely worthless tokens assert claims based on fantastic fair values, creating massive fictitious liabilities.

As a result, we think that these assets should:

  • either be repaid in kind,
  • or be valued using a liquidity approach that channels proceedings toward realizable value and ethical outcomes.

A liquidity approach allows you to shrink the 1.2b claim value to close to a big fat zero. 

Adding the shady context around the IEO, it is fair game to ask for straight disallowance of the claim as it is filled by FTX victims’ money.

Conclusion

Oxy and Maps founder Alex Grebnev was clearly trying to slip through the cracks and extract more funds without being noticed.

Even Oxygen’s top executives admit that only Grebnev can explain what happened, and why 95% of the supply is in the hands of FTX.

FTX creditors are rightfully calling for Grebnev’s outrageous claims to be disallowed and blocked given the glaring signs and lack of transparency.

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