Thomas Braziel has a new job. He runs a claims company called 117 Partners, and he's actively recruiting people who lost bitcoin in the Coldcard wallet hack. The catch: Braziel was previously court-ordered to repay nearly $2 million after he fabricated financial records while managing another corporate receivership.
The Coldcard breach is massive. Since late July, roughly 7,300 addresses have been drained of 1,596 BTC, already exceeding $100 million in losses. A suspected fourth wave could push the total past $130 million. Last week, Braziel posted on social media asking victims to contact him directly. "If you were affected by the COLDCARD firmware vulnerability and lost bitcoin, please DM me," he wrote. Two days later he announced plans for legal action with 10 to 30 claimants and steered victims into a private Telegram channel.
How a receiver's house of cards collapsed
Back in 2016, Delaware courts appointed Braziel receiver of Fund.com after a default judgment against the company. His job was straightforward: liquidate the firm and pay its investors. By 2024, though, the Delaware Court of Chancery discovered he'd been manufacturing account statements and creating falsified bank records. The court's special magistrate compared his conduct to criminal offenses. A vice chancellor removed him as receiver and ordered him to pay back $1,945,063.
Braziel's own lawyers conceded the point. "By and large, Braziel accepts the report's extensive factual and legal findings," they told the court. He invoked his Fifth Amendment right more than 500 times during his deposition. No prosecutor charged him with a crime, and he eventually paid the restitution, but the damage to his credibility was irreversible.
Victims now face a choice with no good options
Coldcard victims are desperate. They've lost six-figure sums in some cases, and the wallet maker's response has been slow. Braziel's offer of legal representation might seem like a lifeline, but his track record raises obvious red flags. He's the kind of operator who appears when victims are most vulnerable, when they're willing to trust anyone with a plan.
The irony cuts deep. Victims of one financial disaster are being solicited by someone who mismanaged another. No knight in shining armor is coming for Coldcard holders. They're choosing between filing solo claims, joining Braziel's legal action, or absorbing the loss entirely. Each path carries its own risk.
