The chain of bankruptcy of crypto companies is not over yet

Major crypto companies that have filed for bankruptcy in the past year include Genesis, Core Scientific, Blockfi, FTX, Celsius Network, Voyager Digital, Three Arrows Capital.

The lender of the Genesis cryptocurrency company (US) Genesis Global Capital on January 19 filed for bankruptcy protection, becoming the latest "victim" of the ongoing crypto crisis.

This shows that while Bitcoin is bullish in 2023, the impact of the crypto crisis continues to hit companies operating in the sector.

Below is a list of the major crypto companies that have filed for bankruptcy in the past year.

* Genesis

As one of the largest crypto lenders, Genesis Global Capital "locked" customer withdrawals in November 2022, after the collapse of the FTX exchange stunned the financial world .

In the bankruptcy filing filed with the Southern District Bankruptcy Court of New York on January 19, Genesis Global Capital said the total value of the company's assets and liabilities ranged from 1 to 10 billion. USD and is estimated to have more than 100,000 creditors.

Genesis Global Holdco, the parent corporation of Genesis Global Capital, also filed for bankruptcy protection, along with another lender, Genesis Asia Pacific.

* Core Scientific

One of the largest publicly traded cryptocurrency miners in the US Core Science filed for Chapter 11 bankruptcy protection in December 2022. The reasons cited by Core Science are due to the drop in Bitcoin price, soaring energy costs, and $7 million worth of outstanding debt from the bankrupt crypto lender Celsius Network.

* Blockfi

Cryptocurrency lender BlockFi filed for bankruptcy protection at the end of November 2022, about two weeks after FTX collapsed.

BlockFi said that due to a lot of cooperation with FTX, the company encountered a liquidity crisis. The New Jersey-based lender borrowed $400 million from FTX to stay afloat after competing crypto lenders Voyager Digital Ltd and Celsius Network went bankrupt in early 2022.

* FTX

The Bahamas-based exchange shocked the crypto world when it filed for bankruptcy protection in November 2022, after seeing a wave of massive withdrawals of up to $6 billion in just 72 hours. , and was unexpectedly "rescued" by rival crypto exchange Binance.

FTX-affiliated hedge fund Alameda Research has also filed for bankruptcy. The collapse of companies founded by former billionaire Sam Bankman-Fried has become one of the most serious failures in the cryptocurrency sector. Investors in FTX include BlackRock and Canada's largest pension fund.

Former billionaire Bankman-Fried has pleaded not guilty in a New York court to criminal violations related to the collapse of FTX.

* Celsius Network

Bankrupt due to the collapse of terraUSD (the decentralized and algorithmic stablecoin of the Terra blockchain) and luna, Celsius began filing for bankruptcy protection in the US on July 14.

Since then, Celsius has been embroiled in disputes over fraud investigations, discriminatory treatment of customer accounts, customer privacy, and investment in a new Bitcoin mining facility.

* Voyager Digital

New Jersey-based crypto lender Voyager Digital filed for bankruptcy in the US on July 6 after Three Arrows Capital (3AC) defaulted on a crypto loan worth more than $650 million. .

The US branch of major crypto exchange Binance said in December that it intends to acquire Voyager's crypto lending platform in a deal worth around $1 trillion.

However, the deal could be delayed or blocked during the due diligence process of foreign investment in US companies because of national security risks.

* Three Arrows Capital

Crypto hedge fund Three Arrows Capital filed for bankruptcy on July 1, due to the terraUSD and luna crash in May.

This crisis "wiped" 42 billion USD worth of investors' assets and as a result, South Korea issued arrest warrants for the developers of terraUSD.