Arceau, a boutique investment firm, has created a platform to automate the process of verifying cryptocurrency bankruptcy claims. This platform will make it easier for smaller creditors to access traditional bankruptcy markets, allowing Arceau to buy out their claims.
Last year, many large crypto firms collapsed, leaving thousands of investors with assets trapped in interminable bankruptcy processes. One option for these creditors is to sell their claims at a discount at marketplaces such as X Claims or Claims Market. However, due to the cost of due diligence, there are few providers of liquidity for claims of around $50,000 or less.
We’ve created a software tool that automates the process of proving you have an FTX claim, said Ouroboros co-founder Louis d’Origny. It’s a lot of work for a fund to prove that you have a claim in the FTX case, and most funds will not buy a claim that’s under $2 million.
Joining d’Origny and other Arceau co-founder Michael Bottjer on Ouroboros is crypto bankruptcy investor Thomas Braziel, a partner at 507 Capital. Ouroboros is going after smallish claims and making liquidity for them, and yet they are sophisticated buyers, Braziel said. I think it’s great for the market and I’m happy to be part of it and maybe bring in some capital.