Crypto lending platforms have had to resort to extreme measures in some cases, such as freezing trades
Crypto lending platforms have had to resort to extreme measures in some cases, such as freezing trades
The cryptocurrency lender, which flourished during the COVID-19 pandemic, has run into difficulties recently due to the collapse of a major coin in May and a downturn caused by global risk-off sentiment.
(Sign up for today’s cache of our technology newsletter, for insights on emerging topics at the intersection of technology, business and policy. Click Here To subscribe for free.)
Below are some of the firms that have been in trouble recently:
Terraform Labs
The South Korea-based company behind the dollar-denominated stablecoin TeraUSD and its paired token Luna has Price drop in MayPromoting the sell-off and igniting a chain reaction.
The company’s co-founder, Do Kwon, announced a “recovery plan” in May, with additional external funding and the rebuilding of TeraUSD, instead of relying on an algorithm to maintain its 1:1 pegged reserves. supported by.
An official at South Korea’s Supreme Prosecutor’s Office said on June 21 that several employees of Terraform had been put on a no-fly list and can’t leave the country,
Voyager Digital
The US-based crypto lender said on 6 July that it had filed for bankruptcy.
In its Chapter 11 bankruptcy filing, Voyager estimated that it had more than 100,000 creditors and somewhere between $1 billion and $10 billion in assets, and liabilities of similar value.
Three Arrows Capital (3AC)
Singapore-based crypto hedge fund has entered into liquidation On June 29, two days after receiving a notice of default from lender Voyager for failing to make payments on a crypto loan of over $650 million.
According to a court filing on July 1, the company was seeking protection from creditors under Chapter 15 of the U.S. Bankruptcy Code, which allows foreign debtors to protect U.S. assets.
Celsius Network
the lending company froze it Withdrawal and Transfer Servicesciting “extreme” market conditions, and has hired consultants on a potential bankruptcy filing.
On July 4, the US-Israeli company said it had laid off a quarter of its workforce, Calcalist reported.
waldo
The Singapore-based company said on 4 July that suspended clearance to its more than 800,000 customers. In a blog post, Wald said it was facing “financial challenges” due to volatile market conditions.
“The financial difficulties of our major business partners are inevitably affecting us,” the company said, adding that customers have withdrawn approximately $200 million since June 12.
babel finance
The Hong Kong-based crypto lender said it had temporarily suspended withdrawals and redemptions of crypto assets on June 17, as the company scrambles to pay its customers.
“Due to the current situation, Babel Finance is experiencing unusual liquidity pressures,” the company said, highlighting the high volatility of the digital currency market.