With billions locked up in collapsed exchanges and funds, investors are selling their assets for cents on the dollar.
The motivations on each side of claim sales are different, but complementary. The seller either needs immediate cash to meet bills, wants to write down their losses for tax purposes, or believes they can earn a greater return by investing the money elsewhere. The buyer, meanwhile, is wagering that the value eventually returned to creditors will exceed the amount they paid for the claims.
“We’re giving people the power to make a choice they otherwise wouldn’t have,” Matthew Sedigh, founder of Xclaim, says. In late 2022, Xclaim pivoted to focus exclusively on crypto bankruptcies. Since then, the marketplace, which by January had listedin total claims, has attracted more users and drawn in greater revenue than in the two previous years combined, Sedigh says.
However, purchasing claims is not for the faint of heart, says Thomas Braziel, founder of 507 Capital, an investment company that specializes in distressed debt, which holds a large position in the Mt. Gox bankruptcy and others. Not only do creditors sometimes misrepresent the value of their claims, intentionally or otherwise—some people “fib around the edges,” says Braziel—but some claims turn out to be entirely fraudulent.
Singapore Latest News, Singapore Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Crypto Exchange Mango Markets Considers Raising Interest Rates for Popular TokensCrypto exchange mangomarkets is voting on whether to raise its interest rate and lower the level at which it kicks in. realDannyNelson reports.
Read more »
Crypto markets are a 'total criminal enterprise': Nouriel Roubini'Dr. Doom' economist Nouriel Roubini says the crypto industry is a 'total criminal enterprise' riddled with market manipulation
Read more »
North Korean hackers using stolen crypto to mine more crypto via cloud services: ReportCybersecurity service provider Mandiant has identified a group of North Korean hackers that uses cryptocurrency to pay for the mining of more cryptocurrency.
Read more »
Bitcoin reclaims $28,000, and FDIC gives deadline for Signature's crypto clients: CNBC Crypto WorldCNBC Crypto World features the latest news and daily trading updates from the digital currency markets and provides viewers with a look at what's ahead with high-profile interviews, explainers, and unique stories from the ever-changing crypto industry. On today's show, Sergey Nazarov, the co-founder of Chainlink, weighs in on sentiment among blockchain developers amid the current crypto environment.
Read more »
Fair crypto laws ‘possible’ in the US but needs ‘a lot of work’ — Crypto Council advisorIt's still possible that the United States can craft laws that treat the crypto industry fairly, says Crypto Council for Innovation’s CryptoSeanLee, but it won't be easy.
Read more »
First Mover Americas: Bitcoin Drops on CFTC’s Suit vs. Binance$BTC sank to below $27,000 following news of the CFTC's lawsuit against binance. Some traders expect a drop to the $25K-22.5K range. LedesmaLyllah reports.
Read more »