Thomas Braziel, a collapsed businesses investor, capitalized on the bankruptcy of FTX by brokering the sale of FTX claims, the company having fallen after founder Sam Bankman-Fried was convicted of stealing $8 billion. Buyers speculate that the claims will be paid back at more than the 50 cent on the dollar that they purchase for. Some of these buyers are financially successful investment firms such as Farallon Capital and others are less reputable. The bankruptcy also attracts speculators due to their belief that FTX, under new leadership, has recovered $7 billion of losses. Although the IRS has filed a $24 billion claim with FTX, Braziel believes the claim is without merit. He is bullish, citing oversubscribed conference appearances and celebrity deals. Buyers must also adhere to know your customer rules, which can restrict claim sales. The status of potential returned payments is uncertain, with over $300 million being spent on administrative fees and taxes. The situation remains in flux with regard to court hearings and the potential impact of the IRS’ involvement.
