Crypto Investment Firm Develops Platform to Ease Access to Bankruptcy Markets for Small Creditors

ImageBoutique investment firm Arceau has innovated a platform to automate the process of verifying cryptocurrency bankruptcy claims in companies such as Celsius or FTX, thereby enabling it to buy out smaller creditors who found it hard to access traditional bankruptcy markets. In the last year, several large crypto firms have collapsed, making hundreds of investors unwitting creditors whose resources are now trapped within never-ending bankruptcy procedures.

One way in which creditors can sell their claims at a discounted price is by offering them on marketplaces such as X Claims or Claims Market. However, the cost of due diligence seems prohibitively expensive for small claims of about $50,000, making it hard to gather liquidity providers.

To resolve this issue, Ouroboros co-founders Louis d’Origny and Michael Bottjer created a software tool that eases the process of providing proof of an FTX claim. However, obtaining proof is a lot of work, most funds will not buy a claim under $2 million, which means small creditors have almost no chance of selling their claims.

Investor Thomas Braziel, who is also a partner at 507 Capital, joins d’Origny and Bottjer on Ouroboros. They are focusing on small to medium-sized claims and creating liquidity for them, while remaining sophisticated buyers. Overall, Braziel sees this as an excellent addition to the market and is pleased to be a part of it. Bringing capital is also a possibility.