Jul 15, 2022
By: Eetika KapoorCompanies providing decentralized services and offering high yields on crypto currencies crashed, wiping off over $2 trillion from the crypto market in June 2022. The fall was triggered by the collapse of stablecoin Terra Luna in May. Here are crypto companies that have been severely affected by the crash.
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US based crypto lending firm Celsius filed for bankruptcy protection on July 14.The collective debt Celsius owes is $5.5 billion.
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Voyager, a crypto broker who acted like a bank went bankrupt on July 6. Voyager digital had 3.5 million users and assets worth $5.9 billion at its peak.
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Singapore-domiciled crypto lender Vauld froze all withdrawals on July 4 and said it had $70 million in net liabilities. It has been in talks to be acquired by London-based crypto platform Nexo.
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The company Terra Labs formed stablecoin Terra Luna, which was said to be pegged with the value of a dollar. In May, Terra Luna crashed, wiping out $500 million from the crypto market.
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A crypto hedge fund based in Singapore, Three Arrows Capital went bankrupt on June 29. It owed $650 million to crypto lender Voyager Digital, which is now bankrupt.
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Hong Kong-based cryptocurrency lender Babel Finance halted withdrawals of its customers on June 17 citing extreme market volatility. The company is facing liquidity issues.
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Korean start-up Uprise lost over 99 percent of its asset worth, or $20 million, on July 7. The company shorted the Terra Classic native token and owing to market volatility lost customer funds.
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Seychelles-headquartered crypto trading firm CoinFlex suspended withdrawals by its customers in June. It claimed debt of $84 million, triggered by a huge dip in one investor’s money in the same month.
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Crypto payments gateway Coingate announced on July 14 that it was ceasing operations in the USA. The company advised users to withdraw funds before July 19.
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