These Crypto Firms Have Run Into Hardships And Trouble After Meltdown

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List of crypto firms that have run into hardships

Crypto firms, which boomed during the COVID-19 pandemic, have run into difficulties recently due to a slump brought on by the downfall of a major token in May and a global risk-off sentiment.

Below are some of the firms that have run into trouble recently:

Terraform Labs

The South Korea-based company, which is behind the dollar-pegged stablecoin TerraUSD and its paired token Luna, plunged in value in May, sparking sell-offs and igniting a chain reaction.

The company's co-founder, Do Kwon, announced in May a "recovery plan", with additional outside funding and rebuilding of TerraUSD so that it is backed by reserves rather than relying on an algorithm to maintain its 1:1 dollar peg.

An official at South Korea's Supreme Prosecutors' Office said on June 21 that several employees of Terraform had been put on a no-fly list and cannot leave the country.

Voyager Digital

The US-based crypto lender said on July 6 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 worth the same value.

Three Arrows Capital (3AC)

The Singapore-based crypto hedge fund sought protection from creditors under Chapter 15 of the U.S. bankruptcy code, which allows foreign debtors to shield U.S. assets, according to a court filing on July 1.

Liquidators for 3AC obtained U.S. court permission on July 12 to issue subpoenas and lay claim to its assets, noting that 3AC's missing-in-action founders no longer control its accounts.

Celsius Network

New Jersey-based Celsius said on July 13 it had filed for bankruptcy. It listed estimated assets and liabilities on a consolidated basis