List of Bankrupt Crypto Platforms

The collapse of the main terra USD token last May made several digital currency platforms unable to withstand the collapse of crypto prices.

Here's a list of bankrupt crypto platforms:

Celsius

Most recently, the crypto company Celsius filed for bankruptcy using the US Bankruptcy Act Chapter 11. This means that the company wants to ask for protection to continue operating even though it is insolvent.

In his statement, Celsius stated that he would try to stabilize his business by restructuring in a way that maximizes value for all stakeholders.

Launching CNBC on Thursday (14/7), Celsius has US$167 million in cash to support temporary operations. The company's attorneys previously notified US state regulators of the move.

Celsius co-founder Alex Mashinsky said the move was the right decision.

"I am confident that when we look back at Celsius' history, we will see this as a defining moment, in which acting with determination and confidence served society and strengthened the future of the company," said Mashinsky.

Celsius became a concern over the past month after freezing customer accounts and blaming "extreme market conditions".

Voyagers

Canadian crypto broker Voyagers Digital Ltd also filed for bankruptcy protection due to the volatility of the crypto market and the collapse of hedge funds lending funds to the company.

Voyager began bankruptcy proceedings at the US Bankruptcy Court for the Southern District of New York. In its Chapter 11 filing, Voyager lists assets and liabilities of between US$1 billion and US$10 billion, respectively.

According to CNBC, the company says it has about US$1.3 billion of crypto on its platform. In addition, Voyager also holds more than US$350 million in cash on behalf of customers at Metropolitan Commercial Bank New York.

Voyager suffered heavy losses from its exposure to crypto hedge fund Three Arrows Capital, which went bankrupt weeks earlier after defaulting on loans from a number of companies in the industry. Including US$650 million from Voyager.

"We believe strongly in the future of the industry, but the prolonged volatility in crypto markets and default Three Arrows Capital required us to take this decisive action," said Voyager CEO Stephen Ehrlich.

Three Arrows Capital

Singapore-based high-profile crypto investment company Three Arrows Capital (3AC) has officially filed a bankruptcy petition with a court in New York, USA.

According to Reuters, 3AC was one of the highest profile investors hit by a sharp sell-off in the crypto market and is currently being liquidated.

Representatives for 3AC filed a petition in the US Bankruptcy Court for the Southern District of New York. Based on the information gathered, the company founded by Su Zhu since 2012 began to face financial difficulties due to the collapse of Luna and UST in early May.

In mid-June, 3AC failed to meet several margin calls and eventually liquidated several bitcoin and ethereum trading positions. In addition, some lenders, such as Voyager Digital, have demanded that 3AC repay its debts.

Vauld

Singapore-based crypto lending and trading platform Vauld said it would suspend withdrawals and trading and seek new investors. This was due to pressure in the crypto industry.

Main Director of Vauld Darshan Bathija said that his company faced financial challenges due to volatile market conditions.

In addition, the financial challenges were also caused by the financial difficulties of the main business partners and the current risk asset-based market climate.

Vauld has suspended customer withdrawals of more than US$197.7 million since June 12.

The company said it has appointed legal and financial advisors to discuss with potential investors.