LOS ANGELES (April 11th, 2023) – Xclaim, the only public marketplace to trade crypto assets locked by bankruptcy, announced today it has closed Series A financing. The company intends to use the funds to accelerate the adoption of electronic bankruptcy claims trading by introducing new financial products to further enhance market liquidity and accessibility.
The new injection of capital comes at a time when the crypto industry is experiencing severe distress, with several once high-flying companies now in federally supervised wind-down or reorganization. While the bankruptcies are pending, an estimated $40 billion of crypto assets remain inaccessible to as many as 15 million account holders globally.
The resounding call from customers for a solution to this unnecessary problem proved to be an empowerment of these customers to determine their own best interests - whether to cash-out their claim in an open market transaction or wait for the bankruptcy process to conclude. Increasingly, creditors are recognizing the value of immediate liquidity and the ability to control and reinvest their own funds.
"Xclaim has long been building an online marketplace for bankruptcy claims. Just recently we’ve definitively proven that this market can operate electronically, at scale, for the benefit of creditors. We’ve enabled the early recovery of significant value to investors that became casualties of the crypto market collapse,” Founder and CEO Matthew Sedigh said. “With this latest round of financing, we are grateful to receive the enthusiastic support of crypto pioneer Josh Jones and other investors. The new capital will enable us to further refine the user experience, provide our customers with the products and services they’ve been asking for, and cement Xclaim as the global destination for unlocking value from bankruptcy."
The platform offers a user-friendly interface that allows customers to easily manage and market their claims against bankrupt crypto exchanges such as FTX, BlockFi, Celsius, Genesis, 3AC, Voyager and CRED. Customers are also provided with expert analysis and insights into the bankruptcy proceedings and market activity, enabling more-informed decision-making and reducing costs and time-needs relative to the offline market that existed prior to Xclaim.
“After founding BitcoinBuilder and having a decade-long front-row seat to the Mt Gox bankruptcy, it became clear that the standard process for recovering value for creditors was broken and maddeningly slow. I knew there was a better way to preserve and distribute value for creditors made hostage to those processes," Josh Jones, the lead investor in Xclaim’s financing, commented. "Matt and his team have proven that by providing the solution directly to those affected, enabling a recovery of value instantly through a bid/ask exchange model. They've done a great job attracting the necessary components to any market: supply and demand, and I'm super excited to watch them revolutionize the entire industry."
Xclaim has listed over $600 million of crypto claims from customers globally and traded over $200 million in claims. Claims as large as $52 million have traded through the platform.
As of March 31, 2023, 1,053 claims representing $496 million were actively listed for sale through Xclaim. With over 500 registered investors, the market dynamics are in balance to ensure fair pricing through a competitive trading environment.
Xclaim’s trusted service has cemented the company as the leading solution for crypto claim holders looking to bypass the bankruptcy process and instantly recover value.
Read the original article - Fortune. To learn more about Xclaim and recovering value from locked crypto accounts, please visit: www.x-claim.com
Xclaim operates the only independent online trading platform for crypto bankruptcy claims. With the largest network of buy-side traders, crypto account holders can trust the competitive and transparent solution of an open-market platform to deliver the highest price and most favorable terms. Xclaim is relentlessly focused on helping its customers unlock value and better allocate risk amid rapidly changing market conditions.