Small-scale investment company Arceau has created a platform to streamline the verification of bitcoin bankruptcy claims in companies like FTX or Celsius, enabling it to acquire smaller creditors who had trouble accessing traditional bankruptcy markets. Many major cryptocurrency companies went out of business last year, turning thousands of investors into unsuspecting creditors and trapping their assets in protracted bankruptcy proceedings.
One option available to those whose assets are ensnared in a bankruptcy estate is to sell their claims at a discount at markets like X Claims or Claims Market. However, because of the high expense of the due diligence, Louis d’Origny, a co-founder of Ouroboros, believes that there are very few sources of liquidity for relatively modest claims of up to $50,000.
However, d’Origny stated in an interview that “We have developed a software tool that automates the process of proving you have an FTX claim.” Most funds won’t purchase a claim for less than $2 million since it takes a lot of work for them to establish that you have one in the FTX case. For small debtors, that cap makes selling their claims all but impossible.Thomas Braziel, a partner at 507 Capital, joins d’Origny and fellow Arceau co-founder Michael Bottjer on Ouroboros as a crypto bankruptcy investor.
In a message, Braziel said that even if the buyers were intelligent, “Ouroboros is going after smallish claims and making liquidity for them.” I’m glad to be a part of it and perhaps provide some funds because I think it’s wonderful for the market