Top Crypto Companies that are Under Financial Crisis
Following is the list of top crypto companies that are in the news related to distress:
- FTX collapsed after a takeover deal with Binance failed.
- Regulators are moving in on distressed crypto exchange FTX as it scrambles to raise billions in funds to stave off collapse.
- According to a company statement, the cryptocurrency exchange FTX has filed for Chapter 11 bankruptcy protection in the U.S.
- Bankman-Fried has also stepped down as CEO and is succeeded by John J. Ray III.
- Terraform Labs algorithmic stablecoin TerraUSD, which de-pegged from the US Dollar and led to the crash of Terra Luna, another crypto token. It triggered the crypto crash, which led to a panic sell-off in the crypto markets.
- The company is under investigation by the South Korean authorities post-Terra Luna crash.
- Terraform Labs is also facing a 100 billion Won ($78.5 million) fine for evading corporate taxes in South Korea.
- Do Kwon, Terra co-founder, had liquidated Terraform Labs days before the TerraUSD de-pegging and Terra Luna crash, according to official documents.
- Over 2,80,000 South Koreans lost their life savings in the crash.
- Celsius suspended withdrawals on June 12th, 2022.
- The company filed for bankruptcy in July 2022. The filing was done in the Southern District of New York, listing a $1.19 billion deficit.
- Celsius is facing federal investigations in the United States due to its alleged operational irregularities.
- Celsius has more than 100,000 creditors.
- New York, California, and six other state regulators have filed an action against the crypto-lending platform Nexo Group for failing to register with the state as securities and commodities brokers or dealers and lying to investors about their registration status.
Three Arrows Capital
- Singapore-based Three Arrows Capital had run into difficulties following the sharp sell-off in the market for digital currencies.
- The crypto hedge fund filed for Chapter 15 bankruptcy (Liquidation) in the Southern District of New York federal court.
- According to court filings, Three Arrows Capital owes more than $2.8 billion to its creditors.
- The company initiated a round of layoffs, cutting around 2000 jobs.
- Crypto.com has temporarily halted the flow of two top SOL ecosystem stablecoins.
- Commits to proof-of-reserves after halting certain deposits and withdrawals.
- Agrees to Pay $100 Million in Penalties and Pursue Registration of its Crypto Lending Product.
- BlockFi halts client withdrawals and limits platform activity amidst the FTX crisis.
- Voyager has filed more than $650 million claims against Three Arrows Capital.
- The company filed for Chapter 11 bankruptcy on July 6, reporting that it had $110 million worth of cash and crypto assets.