Crypto Bankruptcy Shock: Ouroboros Targets Smaller Claims!

Key Points:

• Boutique investment firm Arceau creates platform to automate verifying crypto bankruptcy claims, allowing them to buy out smaller creditors who found it hard to access traditional bankruptcy markets.
• Last year, thousands of investors became unwitting creditors as large crypto firms collapsed, leaving their assets trapped within interminable bankruptcy processes.
• Ouroboros co-founder Louis d’Origny created a software tool to automate the process of proving you have an FTX claim, making liquidity for smallish claims and sophisticated buyers.

Arceau, the boutique investment firm, is providing a solution to the problem that small creditors face in accessing traditional bankruptcy markets.

The firm has developed a platform to automate the process of verifying cryptocurrency bankruptcy claims in firms like FTX or Celsius. This platform allows Arceau to buy out smaller creditors who found it hard to access traditional bankruptcy markets. Last year, the collapse of a number of large crypto firms resulted in thousands of investors becoming unwitting creditors, and their assets are now trapped within interminable bankruptcy processes.

One popular option for those whose assets are locked up in a bankruptcy estate is to sell their claims at a discount on marketplaces such as X Claims or Claims Market. However, there are very few liquidity providers for relatively small claims of around $50,000, due to the cost of the due diligence. According to 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.” This limit makes it almost impossible for small creditors to sell their claims.

Arceau has developed a software tool that automates the process of proving that a person has an FTX claim. Ouroboros, which was founded by Louis d’Origny and other Arceau co-founder Michael Bottjer, is going after smallish claims and making liquidity for them. They are sophisticated buyers who are targeting smaller claims that other funds won’t, which is great for the market. Thomas Braziel, a partner at 507 Capital, is also a part of Ouroboros, and he is happy to be part of it and bring in some capital.

Arceau has developed a platform that provides access to traditional bankruptcy markets for small creditors. The collapse of large crypto firms has resulted in thousands of investors becoming creditors, and Arceau’s platform provides a solution to their problem. Ouroboros is targeting smallish claims and making liquidity for them, which is great for the market.

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