FTX-claims broker embezzled millions to spend on jewelry, art, and luxury hotels

An FTX claims broker who’s dealt with Mt Gox, Celsius, and Voyager Digital, has been ordered to repay $1.9 million after he used embezzled funds to invest in crypto and buy expensive jewelry and other luxury items.

As reported by the Wall Street Journal, last Thursday a Delaware court ruled that Thomas Braziel, who founded crypto bankruptcy claims firms 117 Partners and 507 Capital, had stolen from a receivership fund connected to a bankrupt firm called Fund.com. Braziel was appointed to liquidate its assets and distribute them to investors. 

However, he spent the funds on maintaining a luxurious lifestyle, spending $1 million on hotel stays, apparel, art, and other fineries, including a sapphire ring and emerald earrings.

Read more: FTX estate takes another victim 19 months after bankruptcy

Braziel also used the funds to invest in crypto, further bankruptcy claims, high-risk equities, and leveraged loans.

Broker 117 Partners says it has dealt with $300 million worth of FTX bankruptcy claims and 507 Capital bought almost 4,000 bitcoin in Mt. Gox claims for $1 million.

Braziel’s embezzlement investigation began in 2022 after a shareholder accused him of stealing $3 million. He reportedly attempted to conceal his misuse of funds but eventually largely conceded to the findings. He has been ordered to pay within 20 days. 

On Thursday, he reportedly posted, “I’m on a wave — I’m very lucky — but I’m not letting go.” This post however has apparently been deleted.

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