Unchained How Crypto Bankruptcy Claims Buyers Will Profit From the Collapse of FTX - Ep. 444
Jan 17, 2023
Thomas Braziel, the founder and CEO of 507 Capital, dives into the wild world of crypto bankruptcy claims. He sheds light on the intriguing dynamics of purchasing claims from collapsed crypto giants like FTX and Mt. Gox. Braziel discusses the emerging asset class of 'crypto distressed' investments and how to gauge creditor values. He reveals the importance of asset recovery, the unique challenges posed by different bankruptcy laws, and the ramifications for stakeholders. Fascinating insights into the future of crypto asset trading await!
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Mt. Gox Beginnings
- Thomas Braziel's interest in crypto began with the Mt. Gox bankruptcy, not ideological reasons.
- He bought a claim, then learned about Bitcoin, and it became a passion project.
Crypto Distressed
- "Crypto distressed" is an emerging asset class within the broader emerging asset class of crypto.
- Braziel has experience in traditional distressed deals and sees crypto distressed as a growing area.
3AC and FTX as Crypto Recovery Plays
- Three Arrows Capital (3AC) and FTX bankruptcies resemble crypto recovery plays, with potential for long-term value appreciation in their venture portfolios.
- These portfolios could significantly affect recoveries, even if initial payouts are in fiat.