Here are the companies that have collapsed so far

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Topline

Last year’s crypto crash continues into 2023 as a number of major crypto companies collapse or suspend operations. Here’s a look at that damage so far.

In this photo illustration, a visual representation of the digital Cryptocurrency, Bitcoin in front… [+] of a Bitcoin chart is displayed.

Getty Images Key Facts

January 20: Genesis, a leading cryptocurrency lender, announces that it has filed for Chapter 11 bankruptcy, another victim of the FTX collapse.

December 21: Core Scientific, one of the largest publicly traded bitcoin mining companies, filed for bankruptcy with liabilities of up to $1.3 billion to its 1,000 to 5,000 creditors, though it is suing its mining operations.

November 28: BlockFi, another top cryptocurrency lender, files for bankruptcy following the collapse of FTX, with which it had major financial ties, lists $1.3 billion in liabilities and ceases its operations. activities.

Nov. 11: FTX, a leading volume exchange trading platform that has become more than an exchange marketplace with retail investors able to trade crypto derivatives, announced that it was going bankrupt, sending sending shockwaves to an already damaged crypto industry with its liabilities reaching as much as $9 billion while its CEO Sam Bankman-Fried faces criminal charges.

August 9: Hodlnaut, a Singapore-based crypto lender, suspends withdrawal, token trading and deposits citing market conditions, and several days later files for creditor protection in the Singapore High Court .

July 5: Voyager Digital, a crypto broker, files for Chapter 11 following a $660 million default by Three Arrows Capital, a crypto hedge fund, suspending withdrawals days before filing for bankruptcy, and must now $1.3 billion to its 100,000 creditors.

July 5: Three Arrows Capital (3AC), a Singapore-based crypto hedge fund that manages nearly $10 billion in assets, files for Chapter 15 bankruptcy to protect itself from creditors following the collapse of the popular cryptocurrency TerraUSD, in which 3AC had a large investment. in.

May 12: TerraLabs, a popular blockchain with its USD-pegged cryptocurrency TerraUSD (UST), halts operations as the cryptocurrency drops to 35 cents and its companion token LUN is set to stabilize the falls UST price drops from $80 to less than 10 cents, triggering crypto crash and wiping out $1 trillion in assets as founder Do Kwon faces arrest warrant from South Korean officials .

Key Context

The crypto industry was a Wild West and has suffered various crashes since the invention of the first cryptocurrency, Bitcoin (BTC), in 2008. Most of the crashes all trace back to Bitcoin, the most popular cryptocurrency nowadays. In 2011, Bitcoin fell from $32 to $0.01 after Mt. Gox, then the major crypto exchange, disclosed a security breach that resulted in the theft of 850,000 BTC. From 2013 to 2015, Bitcoin suffered losses again and rose from $1,000 to $170 in just two years after Mt. Gox suspended withdrawals in 2014 and US financial authorities began to question Bitcoin. and start regulating.

Further reading

Crypto crash escalates amid fall of industry’s Bankman-Fried ‘white knight’ (Forbes)

Crypto market tops $1 trillion for first time in months as Bitcoin recovers from FTX-induced crash (Forbes)

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