Market downturn is taking a toll on many firms in the crypto segment

The fall in cryptocurrencies over the past few months has had a major impact on many firms belonging to this segment. The price of Bitcoin, the largest cryptocurrency by market capitalization, is down more than 56 percent from this year’s high. Many crypto firms have filed for bankruptcy or need to raise funds quickly.

Three Arrows Capital

Recently, Three Arrows Capital was given a default notice for failing to pay the loan. A court in the British Virgin Islands has ordered the liquidation of Three Arrows Capital. Consultancy firm Teneo has been appointed as the liquidator.

Celsius Network

The firm had filed bankruptcy last month. It has a loss of about $1.19 billion. The sharp fall in TerraUSD and Luna caused a huge sell-off in the crypto market and took a toll on the firm’s lending business. Thereafter, the firm closed the transactions of the customers to rein in the losses. Some regulators, including the Texas State Security Board, are investigating the decision to ban Celsius Network transactions. The US Securities and Exchange Commission (SEC) has also sought information from the firm in this regard.

Voyager Digital

This firm associated with crypto lending has applied for bankruptcy. The firm says it is looking at other options as well. In the application for bankruptcy, Voyager Digital said that it has more than one lakh creditors. The application has been made under Chapter 11 of Bankruptcy, which bars all legal matters and allows the firm to run as well as prepare a loss recovery plan.

Vault

This firm has stopped the transactions of the customers. Since June 12, the Singapore-based firm has seen customers withdraw nearly $200 million in sell-offs triggered by the collapse of the stablecoin TerraUSD. Vault is facing difficulties for many reasons. These include market volatility and financial difficulties of business partners. The firm has also started talks with potential investors.

(This news has not been edited by NDTV team. It has been published directly from Syndicate feed.)

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