A high-profile crypto investor, Thomas Braziel, was ordered by a Delaware court to repay nearly 2 million dollars that he had embezzled from a failed company which had been entrusted to his management.

The verdict on Thursday largely confirmed the conclusions of a court-appointed investigator that Braziel had misappropriated funds from a publicly traded company called Fund.com. These funds were invested in "bankruptcy claims, cryptocurrencies, leveraged loans, and high-risk stocks," as well as in a hotelier in Bermuda.

Braziel spent nearly 1 million dollars of company money on items such as a sapphire ring, diamond earrings, a watch, as well as 'luxury hotel stays, clothing, art, and other fine things,' according to the ruling of the Delaware Court of Chancery.

Braziel and his lawyer initially did not respond to requests for comment.

Braziel gained fame on social media platforms dedicated to digital currencies and Wall Street, referring to himself on X as 'the crypto distressed guy.' His company, 117 Partners, specializes in the brokerage of bankruptcy claims, a business that boomed after the 2008 financial crisis but has largely faded in recent years.

However, claims related to failed crypto companies – particularly those from FTX, the bankrupt exchange founded by Sam Bankman-Fried – have revived the market. Recently, some of these claims proved to be extremely lucrative. In May, FTX announced that account holders would receive 118 cents per dollar for their claims, a coup for crypto investors who had been severely impacted by the company's collapse over a year ago.

Even before FTX agreed to repay so much to creditors, Braziel had positioned himself to broker millions of dollars in these claims: 117 Partners stated on its website that it had brokered more than 300 million dollars in FTX claims. In December, the New York Times reported on him in a story about the "hot new market" for crypto bankruptcy claims.

Braziel was initially appointed as receiver in 2016 to liquidate Fund.com, where he had previously worked as an investor. Later, he asked the court for permission to restart the company as an investment firm.

A shareholder of the company later accused him of misconduct as a recipient, and the court appointed a special investigator to examine the allegations, which were found to be true.

In addition to purchasing jewelry and other luxury goods, Braziel invested the unlawfully obtained funds, as determined by the court. The Delaware court noted that "many of these investments generated external profits," which could be reclaimed by the company he managed in bankruptcy administration.

The court found that Braziel ultimately admitted to most of the special investigator's findings, although he initially tried to cover his tracks. "Braziel also attempted to conceal his personal transactions by altering bank records for tax purposes," the court said.

Here's the translation of the heading to English:

"On Thursday afternoon, Braziel posted on X: 'I am riding a wave – I am very lucky – but I am not letting go.'