From 3AC to FTX (and possibly more to come), it’s boom times for those trading crypto bankruptcy claims. Thomas Braziel, founder and CEO of 507 Capital, gives a crash course on bankruptcy law, offering the latest updates on the FTX, Celsius, and Three Arrows Capital cases. Plus, insight on how 2023 could finally be the year Mt. Gox creditors get (some) closure.

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What Happened: Kyle Davies and Su Zhu, founders of the now-defunct hedge fund Three Arrows Capital, hope to raise $25 million in seed funding for their new venture “GTX.”

GTX is a crypto exchange, so-named “because G comes after F,” according to the pitch deck.

Speculation about Digital Currency Group's difficulties have been circulating on social media this week. It can be difficult to determine the truth, but it's worth contemplating the effects of three potential situations.

What Happened: Jared Grey, the “head chef” at decentralized exchange SushiSwap, shared a roadmap for the protocol outlining its plans to scale.

This year, the team will release a DEX aggregation router and the “Sushi Studios” decentralized incubator, increasing its swap volume and fees. It also plans to change up its tokenomics and diversify its treasury.

“By executing our vision, we intend to 10x our market share in 2023,” said Grey.

Why It Matters: SushiSwap sunset its lending protocol Kashi and token launchpad Miso earlier this year, citing a lack of resources.  

The protocol’s Treasury has around 1.5 years of runway left before running dry, revealed Grey in December.

The dire financial situation makes it all the more essential that the protocol’s plans this year are a success.

Alameda Research’s liquidators have incurred $11.5 million worth of losses over the past two weeks, of which at least $4 million were entirely preventable, according to analysis from Arkham Intelligence.

These losses were a result of “a series of market movements that have busted multiple Alameda positions left open after bankruptcy.”

Last week, Arkham found that the liquidators lost 4 WBTC worth $72,000 after they forcibly closed an Aave position, which in itself incurred a penalty. They were liquidated because they opted to remove extra collateral on the DeFi position, instead of paying back the debt to close it out.

“The liquidators, themselves, were liquidated. Are they in over their heads?” wrote Arkham.

Crypto exchange Binance launched an off-exchange settlement solution for clients called “Binance Mirror.” The service will allow institutional investors to hold their collateral in cold storage wallets.

The offering is likely aimed at boosting investor confidence, which has been dampened after FTX’s collapse earlier this year revealed that the exchange misused customer funds. Holding assets off-chain will not only protect them from hacks, but also ensure that the exchange isn’t moving around their funds on the blockchain.

Yana Afanasieva, founder of Competitive Compliance, explains why the narrative around NYDFS’s $100 million settlement with Coinbase over its compliance program is wrong.

*All data as of today, 5 am ET