A number of companies that are active in the crypto business, including Celsius Network, Terra, Voyager Capital, and Three Arrows Capital, have experienced a decline in their prospects over the course of the last few months. This is especially true for Celsius Network. The cumulative amount of debt that the four firms owe to their investors and other creditors is far more than $50 billion.
The leader of the pack, Terra, is to blame for the loss of $40 billion in investor money that was triggered by the catastrophic collapse of its tokens in May. These losses occurred as a result of the catastrophic fall of its tokens. Because of this occurrence, authorities from all around the world have been calling for more regulation of cryptocurrencies, particularly stablecoins.
The cryptocurrency lending platform known as Celsius, which suspended all withdrawals one month ago and filed for bankruptcy the day before yesterday, has a hole in its financial sheet amounting to $1.2 billion, and it has said that it owes its customers a total of $4.7 billion in bitcoin.
Another cryptocurrency company, Voyager Digital, which had just filed for bankruptcy, owes a total of $1.3 billion to its more than 100,000 creditors. Voyager Digital had only recently filed for bankruptcy. As a result of the unknown nature of the measures that are being conducted by both companies, they will be subjected to close examination by politicians, representatives of the industry, and, most significantly, creditors who want to get their money back.
Finally, the co-founders of Three Arrows Capital, Zhu Su and Kyle Davies, are on the run from the angry creditors of the firm, to whom Three Arrows Capital owes several billions of dollars. A court has given his blessing to an emergency motion to place a hold on the crypto hedge fund’s assets. Teneo, who was hired to supervise the liquidation of the company, was granted the ability to also subpoena Su and Davies of Three Arrows.
23 Jan 2023
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