Cryptocurrency companies are collapsing into bankruptcy

Here are the top cryptocurrency companies that went bankrupt in 2022.


The FTX breakout was the biggest and most dramatic crypto crash of 2022 so far. The Bahamas-based exchange started the year with a $32 billion valuation, hired celebrities including Larry David and Tom Brady for flashy Super Bowl commercials and put its name on the NBA’s Miami Heat patch. FTX, which said it has more than a million users, has positioned itself as a “white knight” that could rescue other cryptocurrency businesses amid market turmoil earlier this year.

But in November, FTX filed for bankruptcy after a week in which a potential merger with rival cryptocurrency exchange Binance fell through, with FTX founder Sam Bankman-Fried facing allegations that he siphoned customer deposits into the subsidiary’s trading firm FTX , Alameda Research, and the exchange suffered withdrawals of about $6 billion in just 72 hours. Bankman-Fried said he was “deeply sorry for what happened” and acknowledged a “massive failure of risk management oversight,” but said he did not intentionally mix FTX users’ deposits with Alameda trading activity.

John Ray, the new CEO in charge of overseeing FTX’s bankruptcy, said he had never seen “such a complete failure of corporate controls” before – and Ray was the executive in charge of cleaning up FTX’s debts. Enron after the accounting fraud scandal in the early 2000s.


Crypto lender BlockFi was the first crypto company to follow FTX into bankruptcy, filing for Chapter 11 about two weeks after FTX collapsed.

BlockFi had several ties to FTX and had relied on a $400 million credit facility from FTX to stay afloat after rival crypto creditors Voyager Digital Ltd and Celsius Network went bankrupt following earlier market turmoil. in 2022.

BlockFi previously said it has 450,000 users and plans to ask a bankruptcy judge to allow some of them to withdraw funds. Users who would be able to withdraw funds have interest-free BlockFi Wallet accounts, which BlockFi created earlier this year as part of a $100 million settlement with the US Securities and Exchange Commission changes.


Crypto hedge fund Three Arrows Capital (3AC) was the first major crypto firm to fail in 2022, dragged down by the collapse of cryptocurrencies Luna and TerraUSD in May. These collapses rocked cryptocurrency markets around the world, wiped out $42 billion in investor value, and led to an arrest warrant in South Korea for cryptocurrency developers.

Singapore-based company 3AC, which was said to have $10 billion in cryptocurrency by 2022, began bankruptcy proceedings in the British Virgin Islands in June.

Professionals overseeing the liquidation of 3AC have said its founders have fled the country and are not cooperating with efforts to recover assets for creditors.


Voyager, a New Jersey-based cryptocurrency lender, filed for bankruptcy protection in the United States in July after 3AC defaulted on a cryptocurrency loan worth more than $650 million.

Voyager had hoped to quickly push its bankruptcy through the US court system after reaching a deal in September to sell its assets for $1.4 billion in crypto FTX.

The proposed sale fell through after the FTX implosion, and Voyager reopened talks with other potential buyers, including cryptocurrency exchange Binance.


Another cryptocurrency creditor hurt by the collapse of Terra and Luna, Celsius Network began bankruptcy proceedings in the United States in July on tougher grounds than Voyager.

Since then, Celsius has been embroiled in controversy over fraud investigations, disparate handling of customer accounts, customer privacy and its spending on a new bitcoin mining facility.

Celsius’ bankruptcy judge has appointed an examiner to determine whether Celsius was operating as a Ponzi scheme and to conduct an overall review of the company’s finances. Celsius said it welcomed an independent review, but expressed concern about the duplication of investigations by its creditors, state securities regulators and the bankruptcy examiner.

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