© Reuters. Thomas Braziel To Share Insights At Benzinga’s Event: From Mt.Gox To FTX, Capitalizing On Crypto’s Tumultuous Terrain
Benzinga – Thomas Braziel is the CEO of 117 Partners and CIO at 507 Capital – firms specializing in distressed and alternative credit, bankruptcy claim purchasing and restructuring advisory.
He is responsible for deal sourcing, due diligence, negotiation, and execution of transactions involving distressed debt, liens, judgments, distressed assets, and frozen accounts. Previously, he was a managing partner for B.E. Capital, a firm specializing in managing capital for high-net-worth individuals and institutions.
Braziel has a BS degree in Mathematics and Economics from New York University and an MA in Mathematics of Finance from Columbia University. Finding distressed assets runs in the family, as his parents are insolvency lawyers.
Alongside other financial experts, Braziel will be providing his in-depth insights at Benzinga’s exclusive event — Future of Digital Assets, speaking on the topic titled “Frontline Stories From Crypto’s Biggest Bankruptcies.”
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There is always a Crypto Crisis Somewhere
An old Wall Street proverb says that there is always a bull market somewhere. In Braziel’s case, this might sound like there is always a distressed crypto asset somewhere.
Braziel’s involvement in crypto spans back to when he bought almost 4,000 Bitcoins (CRYPTO: BTC) of claims from Mt.Gox customers. After the exchange, which processed 70% of Bitcoin transactions at its peak, imploded in 2014, its customers sold their claims to specialists like Braziel – whose profit was in a ballpark of 1700%, as repayments offered compensation up to 90 cents on the dollar.
Nowadays, distressed crypto is again in the spotlight. As the FTX saga drags along in court, the market for FTX distressed credit is running hot, with a $20 million claim recently selling for 52 to 53 cents on the dollar.
Smaller claims, between $500,000 and $800,000, have also seen an uptick in value.
“Those claims are now trading between the high-end of 30 cents and the lower end of 40 cents,” Braziel told Cointelegraph, reiterating that only the “cleanest” claims with the right buyer could sell at these prices.
The newfound confidence might result from FTX’s significant stake in an AI startup, Anthropic, which recently received a $4 billion investment from Amazon.
Still, Braziel sees a positive development due to the recent settlement and plan support announced by the ad hoc committee of non-U.S. FTX customers on Oct. 18. Per this plan, the customers could see over 90% of assets returned by the end of Q2 2024.
“For all the trading and market-making firms, the planned support agreement and the draft outline are really helpful for trading firms to be able to sell their claims,” Braziel said to Cointelegraph.
Still, despite continuous success, there are mixed feelings about all these opportunities due to people losing so much money in failed crypto projects.
“For us, it’s exciting to see stuff,” Braziel said. “But at the same time, you feel bad,” he told Bloomberg.
Benzinga’s Fintech Deal Day & Awards event will enlighten highlights of the current digital asset space. Join Benzinga’s Future of Digital Assets in NYC on Nov. 14, 2023, to stay updated on trends like AI, regulations, SEC actions & institutional adoption in the crypto space. Secure early bird discounted tickets now!
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