Crypto Bankruptcy Series

While bitcoin has rallied this year, the impact of the market crash has continued to hit businesses in the highly interconnected industry.

Here are the top crypto firms that filed for bankruptcy last year (in reverse chronological order).

GENESIS GLOBAL CAPITAL

One of the largest cryptocurrency lenders, Genesis froze customer repayments in November after major exchange FTX stunned the financial world with its bankruptcy. The company is owned by American venture capital firm Digital Currency Group.

In a filing in the United States Bankruptcy Court for the Southern District of New York on Thursday, the company said its assets and liabilities were between $1 billion and $10 billion and estimated it had more than 100,000 creditors.

Genesis Global Holdco, the parent group of Genesis Global Capital, has also filed for bankruptcy protection, along with another lender, Genesis Asia Pacific.

SCIENTIFIC CORE

One of the largest publicly traded cryptocurrency mining companies in the United States, Core Scientific Inc cited falling bitcoin prices, rising energy costs and $7 million in unpaid debt. dollars from bankrupt cryptocurrency creditor Celsius Network to file for Chapter 11 protection in December.

BLOCKFI

Crypto lender BlockFi filed for Chapter 11 protection in late November, about two weeks after FTX collapsed.

BlockFi said its significant FTX exposure had created a liquidity crunch. The New Jersey-based lender had been relying on a $400 million FTX credit facility to stay afloat after rival crypto lenders Voyager Digital Ltd and Celsius Network previously filed for bankruptcy in 2022.

FTX

The Bahamas-based exchange shocked the crypto world when it filed for bankruptcy in November after suffering withdrawals of around $6 billion in just 72 hours, and rival crypto exchange Binance pulled out of a potential bailout.

FTX affiliate hedge fund Alameda Research has also filed for bankruptcy. The collapse of these companies, founded by former billionaire Sam Bankman-Fried, has become one of the most publicized failures in the crypto industry. FTX investors include BlackRock and Canada’s largest pension plan.

Bankman-Fried pleaded not guilty this month to criminal charges that he defrauded FTX investors and caused billions of dollars in losses.

CELSIUS NETWORK

A cryptocurrency creditor hurt by the collapse of terraUSD and luna, Celsius began filing for bankruptcy in the United States on July 14.

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.

DIGITAL TRAVEL

On July 6, New Jersey-based cryptocurrency lender Voyager Digital filed for bankruptcy in the United States after Three Arrows Capital (3AC) defaulted on a cryptocurrency loan of over $650 million.

The U.S. subsidiary of major cryptocurrency exchange Binance said in December that it intended to buy cryptocurrency lending platform Voyager in a deal worth around $1 billion.

The deal, however, could be delayed or blocked during a review by a US agency that screens foreign investment in US companies for national security risks.

THREE CAPITAL ARROWS

Crypto hedge fund Three Arrows Capital filed for bankruptcy on July 1, brought down by the collapse of so-called stablecoin terraUSD and its twin Luna in May.

These collapses wiped out $42 billion in value for investors and led to an arrest warrant in South Korea for the developers of terraUSD.

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