Factbox-The cryptocurrency crash hit these companies hardest.

THREE CAPITAL ARROWS

Singapore-based cryptocurrency hedge fund Three Arrows Capital (3AC) filed for Chapter 15 bankruptcy on 1 July.

Once a formidable player in the digital asset space, 3AC’s downfall appeared to stem from the company’s gamble on the Terra ecosystem, which was behind the failed terraUSD stablecoin. This token lost nearly all of its value in May, robbing the cryptocurrency market by nearly half a trillion dollars.

Heavily indebted, 3AC was unable to meet margin calls from counterparties it had borrowed from. As a result, cryptocurrency lenders BlockFi and Genesis Trading liquidated their positions with the company. According to court documents, 3AC’s creditors say they owe more than $ 2.8 billion.

THE CELSIUS NETWORK

On June 12, Celsius, a New Jersey-based cryptocurrency lender, suspended withdrawals and a month later filed for Chapter 11 bankruptcy, showing a 1.19% billion dollar deficit on its balance sheet. It was valued at $ 3.25 billion in a funding round in October.

Celsius ran into complex investments in the wholesale digital asset market. The company had lured retail investors by promising annual returns of up to 18.6%, but struggled to cope with redemptions as cryptocurrency prices plummeted.

During its first bankruptcy hearing, Celsius lawyers said its bitcoin mining operations could be a way for the company to pay back customers.

Meanwhile, several state regulators are investigating Celsius’ decision to suspend customer withdrawals, Reuters reported.

TRAVEL

Cryptocurrency creditor Voyager Digital, also based in New Jersey, had been a rising cryptocurrency star, reaching a market cap of $ 3.74 billion last year. But the collapse of 3AC was a major blow to Voyager, which was heavily exposed to the hedge fund. Voyager filed claims for over $ 650 million against 3AC.

Voyager filed for Chapter 11 bankruptcy on July 6, claiming it has $ 110 million in cash and crypto assets. Since then, the US Federal Deposit Insurance Corp has confirmed that it is investigating Voyager’s marketing of deposit accounts for the purchase of cryptocurrencies, which the company has advertised as FDIC insured.

Cryptocurrency exchange FTX and Alameda Research, both founded by billionaire Sam Bankman-Fried, have offered to purchase all of Voyager’s digital assets and loans except 3AC loans and allow Voyager customers to withdraw their assets from a FTX account. However, Voyager turned down the offer in a court filing, calling it a “low offer”.

VAULD

On July 8, Singapore-based cryptocurrency creditor Vauld filed a petition with a Singapore court for protection against his creditors, having suspended withdrawals a few days earlier. The company owes its creditors $ 402 million, according to a report by The Block.

Vauld is supported by Valar Ventures, Pantera Capital and Coinbase Ventures from billionaire investor Peter Thiel.

In a blog post on July 11, Vauld said he was discussing a possible sale to Nexo, a London-based cryptocurrency lender, as he explored potential restructuring options.

BLOCK

Faced with rising withdrawals and the 3AC hit, cryptocurrency lender BlockFi signed an agreement with FTX on July 1 that provides BlockFi with a $ 400 million revolving line of credit and includes an option allowing FTX to buy the company for up to $ 240 million.

BlockFi was hit hard by the cryptocurrency crash and implemented multiple cost-cutting measures in June, including a 20% workforce cut and executive pay cut. The company was valued at $ 3 billion in a funding round last year.

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