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Crypto meltdown: 7 companies that were worst hit by the crunch

Crypto meltdown: 7 companies that were worst hit by the crunch

The crypto and DeFi industries have flourished in recent years, but the latest crypto meltdown has depleted the wealth of countless crypto companies.

The crypto and DeFi industries have flourished in recent years, but the latest crypto meltdown has depleted the wealth of countless crypto companies. The crypto and DeFi industries have flourished in recent years, but the latest crypto meltdown has depleted the wealth of countless crypto companies.

The crypto and the DeFi industry boomed over the past few years but the recent crypto crash has plundered the fortunes of several crypto companies. The following crypto companies have recently encountered financial difficulties: 

Vauld

Business Today broke the news on Monday that Vauld, the Singapore-based crypto lending and investment firm operating in India announced that it has halted withdrawals and deposits for its more than 8,00,000 clients. Vauld’s CEO Darshan Bathija said in a blog post that unstable market circumstances had created "financial challenges" for the company. The CEO also announced that investors had withdrawn over $197 million in the past few months. 

Terraform Labs

Terraform Labs was the company that had triggered the recent crypto crash. They created the algorithmic stablecoin TerraUSD which de-pegged from the US Dollar and led to the crash of Terra Luna another token of the ecosystem causing massive panic and sell off in the crypto markets. Terra co-founder Do Kwon announced a "recovery plan" in May that included infusion of additional funding and the rebuilding of TerraUSD so that it is backed by reserves rather than depending on an algorithm to maintain its 1:1 dollar peg. 

Voyager Digital

On July 6, the American crypto lender disclosed that it had filed for bankruptcy. In its Chapter 11 bankruptcy petition, Voyager stated that it had over 1,00,000 creditors, assets between $1 billion and $10 billion in value, and liabilities in the same range. 

Three Arrows Capital (3AC)

The Singapore-based cryptocurrency hedge firm went bankrupt on June 29, just two days after receiving a notice of default on a crypto loan from lender Voyager Digital for failing to make payments on an approximately $650 million crypto loan. The company filed a petition for protection from its creditors under Chapter 15 of the United States' bankruptcy code on July 1. This section of the code permits overseas debtors to safeguard their U.S.-based assets. 

Celsius Network

Celsius Network also suspended withdrawals and transfers last month due to "extreme" market conditions. They also hired consultants in preparation for a future bankruptcy filing. The American-Israeli business reportedly disclosed on July 4 that a quarter of its workers had been let go. 

Babel Finance The Hong Kong-based cryptocurrency lender stated on June 17 that it had temporarily halted crypto-asset withdrawals as it scrambled to reimburse consumers. According to the company, "Babel Finance is suffering unprecedented liquidity issues due to the current market situation," emphasising the severe volatility of the market for cryptocurrencies. 

CoinFLEX

In a blog post published on Thursday, CoinFLEX's CEO Mark Lamb announced that the company would temporarily halt withdrawals due to "extreme market conditions" and uncertainty about a certain counterparty. The company is facing serious financial troubles and there seems to be no way out. 

Also Read: All you need to know about TDS on cryptos in 5 points     - BusinessToday

Also Read: What is the OneCoin scam promoted by Cryptoqueen Ruja Ignatova? - BusinessToday

Published on: Jul 07, 2022, 4:46 PM IST
Posted by: aakanksha chaturvedi, Jul 07, 2022, 4:20 PM IST