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Struggling Crypto Investor Ordered to Return $1.9 Million Withdrawn from Bankrupt Company

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Struggling Crypto Investor Ordered to Return $1.9 Million Withdrawn from Bankrupt Company

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A prominent cryptocurrency investor has been ordered by a Delaware court to return nearly $2 million he allegedly stole from a bankrupt company he was assigned to oversee.

Thursday’s ruling largely upheld a court-appointed investigator’s finding that Thomas Braziel had misappropriated funds from a publicly traded company known as Fund.com, which were used to invest in “bankruptcy claims, cryptocurrencyleveraged loans and junk stocks,” as well as a Bermuda hotelier.

Braziel spent nearly $1 million of company funds on items including a sapphire ring, diamond earrings, a watch and “luxury hotel stays, clothing, art and other fine items,” according to the Delaware Chancery Court ruling.

Braziel and his attorney did not immediately respond to requests for comment.

Braziel has gained prominence on social media devoted to digital currencies and Wall Street, describing himself on X as “the struggling crypto guy.” His firm 117 Partners specializes in brokerage bankruptcy claims, a business that grew after the 2008 financial crisis but has been dormant in recent years.

However, claims related to failed crypto companies — especially those from FTX, the failed exchange founded by Sam Bankman-Fried — have revived the market. Recently, some have proved highly lucrative. In May, FTX said account holders would receive 118 cents on the dollar for their claims, a blow to crypto investors devastated by the company’s collapse more than a year earlier.

Even before FTX agreed to pay creditors that much, Braziel had positioned himself to broker millions of dollars in claims: 117 Partners said on its website that it had brokered more than $300 million in FTX claims. In December, The New York Times reported introduced him in a story about the “hot new market” of cryptocurrency bankruptcy filings.

Braziel was initially tasked as receiver in 2016 with liquidating Fund.com, where he was previously an investor. He later sought and received court permission to restart the company as an investment vehicle.

Later, a shareholder of the company accused him of irregularities as a receiver, and the court appointed a special magistrate to investigate the allegations, which were found to be true.

In addition to buying gemstones and other luxury goods, Braziel invested the illicit funds, the court found. The Delaware court noted that “many of these investments produced outside gains” that could be recovered by the company he oversaw in bankruptcy protection.

The court noted that Braziel eventually largely admitted the special magistrate’s findings, though he initially tried to cover his tracks. “Braziel also attempted to conceal his own trading,” citing bank records that he altered for tax purposes, the court said.

On Thursday afternoon, Braziel posted on X: “I’m on a roll — I’m very lucky — but I’m not giving up.”

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We are the editorial team of Altcoin Updates, where seriousness meets clarity in cryptocurrency analysis. With a robust team of finance and blockchain technology experts, we are dedicated to meticulously exploring complex crypto markets with detailed assessments and an unbiased approach. Our mission is to democratize access to knowledge of emerging financial technologies, ensuring they are understandable and accessible to all. In every article on Altcoin Updates, we strive to provide content that not only educates, but also empowers our readers, facilitating their integration into the financial digital age.

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Bitcoin (BTC), Stocks Bleed as China’s Surprise Rate Cut Signals Panic, Treasury Yield Curve Steepens

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Bitcoin (BTC), Stocks Bleed as China’s Surprise Rate Cut Signals Panic, Treasury Yield Curve Steepens

Risk assets fell on Thursday as China’s second rate cut in a week raised concerns of instability in the world’s second-largest economy.

Bitcoin (BTC)the leading cryptocurrency by market cap, is down nearly 2% since midnight UTC to around $64,000 and ether (ETH) fell more than 5%, dragging the broader altcoin market lower. The CoinDesk 20 Index (CD20), a measure of the broader cryptocurrency market, lost 4.6% in 24 hours.

In equity markets, Germany’s DAX, France’s CAC and the euro zone’s Euro Stoxx 50 all fell more than 1.5%, and futures linked to the tech-heavy Nasdaq 100 were down slightly after the index’s 3% drop on Wednesday, according to the data source. Investing.com.

On Thursday morning, the People’s Bank of China (PBoC) announced a surprise, cut outside the schedule in its one-year medium-term lending rate to 2.3% from 2.5%, injecting 200 billion yuan ($27.5 billion) of liquidity into the market. That is the biggest reduction since 2020.

The movement, together with similar reductions in other lending rates earlier this week shows the urgency among policymakers to sustain growth after their recent third plenary offered little hope of a boost. Data released earlier this month showed China’s economy expanded 4.7% in the second quarter at an annualized pace, much weaker than the 5.1% estimated and slower than the 5.3% in the first quarter.

“Equity futures are flat after yesterday’s bloody session that shook sentiment across asset classes,” Ilan Solot, senior global strategist at Marex Solutions, said in a note shared with CoinDesk. “The PBoC’s decision to cut rates in a surprise move has only added to the sense of panic.” Marex Solutions, a division of global financial platform Marex, specializes in creating and distributing custom derivatives products and issuing structured products tied to cryptocurrencies.

Solot noted the continued “steepening of the US Treasury yield curve” as a threat to risk assets including cryptocurrencies, echoing CoinDesk Reports since the beginning of this month.

The yield curve steepens when the difference between longer-duration and shorter-duration bond yields widens. This month, the spread between 10-year and two-year Treasury yields widened by 20 basis points to -0.12 basis points (bps), mainly due to stickier 10-year yields.

“For me, the biggest concern is the shape of the US yield curve, which continues to steepen. The 2- and 10-year curve is not only -12 bps inverted, compared to -50 bps last month. The recent moves have been led by the rise in back-end [10y] yields and lower-than-expected decline in yields,” Solot said.

That’s a sign that markets expect the Fed to cut rates but see tighter inflation and expansionary fiscal policy as growing risks, Solot said.

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How systematic approaches reduce investor risk

AltcoinUpdates Staff

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How systematic approaches reduce investor risk

Low liquidity, regulatory uncertainty and speculative behavior contribute to inefficiency in crypto markets. But systematic approaches, including momentum indices, can reduce risks for investors, says Gregory Mall, head of investment solutions at AMINA Bank.

Low liquidity, regulatory uncertainty and speculative behavior contribute to inefficiency in crypto markets. But systematic approaches, including momentum indices, can reduce risks for investors, says Gregory Mall, head of investment solutions at AMINA Bank.

Low liquidity, regulatory uncertainty and speculative behavior contribute to inefficiency in crypto markets. But systematic approaches, including momentum indices, can reduce risks for investors, says Gregory Mall, head of investment solutions at AMINA Bank.

July 24, 2024, 5:30 p.m.

Updated July 24, 2024, 5:35 p.m.

(Benjamin Cheng/Unsplash)

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India to Release Crypto Policy Position by September After Consultations with Stakeholders: Report

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Amitoj Singh

“The policy position is how one consults with relevant stakeholders, so it’s to go out in public and say here’s a discussion paper, these are the issues and then stakeholders will give their views,” said Seth, who is the Secretary for Economic Affairs. “A cross-ministerial group is currently looking at a broader policy on cryptocurrencies. We hope to release the discussion paper before September.”

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Bitcoin (BTC), Ether (ETH) slide as risk aversion spreads to crypto markets

AltcoinUpdates Staff

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Bitcoin (BTC), Ether (ETH) slide as risk aversion spreads to crypto markets

Ether, the second-largest token, fueled a slide in digital assets after a stock rout spread unease across global markets.

Ether fell about 6%, the most in three weeks, and was trading at $3,188 as of 6:45 a.m. Thursday in London. Market leader Bitcoin fell about 3% to $64,260.

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