Sinking Crypto Institutions Shut Down Again

In the past, many crypto- to the crisisleading to and bankruptcy the one whocrypto organizations, with new projects in this period, trying to enter the sector.

The cyclical progress of the cryptocurrency market brings with it many consequences. In the so-called bear market, bankruptcies and major crypto crises occur. But during the bull market cycle, cryptocurrencies appear to be in high demand and growing financially.

Crypto organizations, which could not hold on between all these cycles and became history, have been working hard to re-enter the sector recently. Three Arrows Capitaland companies like FTX continue to work with thought again and again.

Sinking Crypto Organizations: Crypto Again!

Cryptocurrency The bear cycle of the market generally came with the havoc created by the actors within the sector. As external factors USA, Chinese or interest rate decisions can also be effective. However crypto- actors is the most important factor affecting the bear market with billions of dollars of damage. So, how are these actors in the industry now?

1- FTX: Again

Cryptocurrency exchange FTXcausing the evaporation of tens of billions of dollars in assets. bankruptcy made its mark on the agenda . Founder Sam Bankman-Fried’ The chain of events that faced heavy accusations still continues on the legal side. FTX bankruptcy, Binance CEO CZ It started with a tweet by . However, it had been secretly on the brink of bankruptcy before. The beginning of all these processes was FTX’s use of client assets.

leveraged transactionsloving Sam bankman friedand CEO of Alameda Research Caroline Ellison traded with clients’ multimillion-dollar assets. However terra with the crisis The crashing market also foiled FTX’s plans. The organization, which lost its assets, came to the brink of bankruptcy.

Users who wanted to withdraw their assets in FTX in panic after CZ’s tweet revealed a liquidity problem in the stock market. The stock market, which melted its customer assets, could not respond to the withdrawal transactions and entered the bankruptcy process. In the ensuing process, lawsuits came one after another for Sam Bankman-Fried and Caroline Ellison.

After all these processes FTXa new head of CEO appointed. New CEO stated that FTX will handle the bankruptcy process and restructure with exchange-owned assets. According to the news in the press recently, FTX is back. to the crypto industryPlanning to enter.

FTX, which previously put the crypto money market into a great collapse, is reviving after nearly a year and entering the crypto sector. It is not known whether investors will use the stock market with the same confidence again.

2- Founders of Three Arrows Capital Launched a New Project

crypto foundation Three Arrows Capitalcaused damage to many investors and to its creditors. $3.5 billion He went into liquidation because he left a debt. Among the creditors of Three Arrows Capital BlockchainComAnd Voyager digital was also included. Voyager fell into bankruptcy immediately after these processes.

Three Arrows Capital ‘s founders, Zhu and Davies, became the heroes of this great collapse. The collapse of the crypto transactions made by these two and the emergence of problems in credit regulations accelerated the collapse. The market, which entered an unrecoverable downtrend, exacerbated the company’s free-collapse.

Zhu, the last event that ended Three Arrows Capital Bitcoin’s fall from $30,000 to $20,000 said that. Zhu stated that they did everything they could during the collapse, but they could not prevent the fall. Finally, Zhu brought up that he lost all his money during this period.

After all these processes Three Arrows Capital While the plug of ‘s was pulled, its founders remained on the agenda. While the court process of the company, which filed for bankruptcy, continues, a new crypto move came from its founders.

Exacerbating the collapse of Three Arrows Capital with their leveraged transactions ZhuAnd DaviesThis time, it is in the sector with a different crypto project.

ZhuAnd Davies , setting aside its previous failures, opened a new cryptocurrency exchange. The name of this opened crypto exchange OPNX it happened. In addition, the native token of the exchange FLEX Announcement was also made. new company, FLEXas ecosystem token of OPNXHe said he would strengthen

It is a matter of curiosity how much trust this duo can gain with the new company, which has previously suffered a major collapse and victimized thousands of crypto investors.

3- Celsius Returns to the Fields with Asset Sale

Influenced by the bearish movement of the cryptocurrency market, Celsius 1 month of payment crisis It then filed for bankruptcy. Celsius, which filed for Chapter 11 bankruptcy, said it had millions of dollars in assets to support its operations.

However, Celsius creditors claimed that the organization failed to meet its payment obligation. The situation, which grew and led to the crisis, turned into a legal struggle.

Crypto company defaults on payment obligation after bankruptcy 1 billion to 10 billion dollars stated that between With the effect of the bankruptcy at that time, Celsius affected more than 100 thousanduser existed.

CelsiusCo-Founder and CEO Alex Mashinsky stated that filing bankruptcy is a necessary move for the company and the community. In the series of bankruptcies that followed one after the other at that time, Celsiusin VoyagerAnd three arrows to Csapitalwas accompanied.

With Celsius going bankrupt, hundreds of thousands of people have suffered directly and indirectly in the crypto industry. But after a long hiatus, Celsius found the strength to come out of bankruptcy with approval in the sale transaction.

The Fahrenheit consortium formed by venture capital firm Arrigton Capital and US Bitcoin Corp. $2 billionbought their assets.

Celsius described Fahrenheit’s acquisition as a recovery from bankruptcy. According to the court ruling, Fahrenheit will buy the bankrupt company’s portfolio of corporate loans, stock cryptocurrencies, mining unit and other alternative investments.

If this purchase, pending regulatory approval, crosses the final straight, Celsius could begin preparations for re-entering the crypto industry by completing the bankruptcy process. The crisis of an era may appear as the fresh blood of a new era.

4- Voyager Tries to Resurrect

filed for bankruptcy in July 2022. Voyager digital had not survived the Terra crisis. The crypto lender Voyager, which filed a Chapter 11 application, requested debt restructuring.

The company, which has entered the bankruptcy process, has to support its operations. 110 million dollarsreported that he has a property. terra crisisAnd Three Arrows Capital’‘s default on its debt to Voyager were factors affecting the process.

At the end of this bankruptcy, thousands of Voyager customers were in a difficult situation, and the cryptocurrency market again suffered a huge decline. The fact that the effects of the Terra crisis did not pass can be attributed to the chain of bankruptcies that followed.

The company, which is in a difficult situation and working hard to get out of the bankruptcy process, of FTX He was hopeful as he sat down at the table. FTX, Voyager DigitalTo buy assets of 1 billion dollars made an offer. Until this proposal, which goes to bankruptcy court, goes through the approval process, FTX is also in charge. unfurl the flag of bankruptcydrew attention.

FTXVoyager, which was wasted by the bankruptcy of , took its breath in Binance. Binance, one billion your dollarHe stated that he wanted to buy the assets belonging to Voyager with an offer on it.

This proposal, which came to the last level and was approved by the court, entered a turbulent period with the opposition of the US authorities. Binance, after many issues Voyager from the agreement that you have withdrawnannounced.

Voyager, which would recover after the possible sale, would pay off its debts to its customers and re-enter the crypto industry. However, the company has yet to find a buyer.

Nevertheless, the crypto credit institution continues its preparations to enter the crypto industry again. Moreover of Voyager official tokenthe one which… VGX , still continues to attract customers by being listed on many stock exchanges. Although the ethical situation is discussed, the company’s bond in the crypto sector is not broken.

5- Bitcoin Miner Core Scientific Could Come Out of Bankruptcy

Cryptocurrencymarket crash, bitcoin It also affected mining companies. Many companies filed for bankruptcy, citing that they were going through difficult processes.

One of the powerful Bitcoin mining companies core Scientific filed for bankruptcy in the USA. Core Scientific, which is publicly traded on the popular US stock exchange Nasdaq, created a bombshell effect with its bankruptcy.

The cryptocurrency market has had a tough time with the Terra crisis, the bankruptcy of FTX, and the subsequent collapse of mining companies. world’s largest 15 crypto mining companiesshown between core Scientific, could not stand and declared bankruptcy.

The bankruptcy filing cited the sharp declines in the crypto market and the rise in energy costs. The market value of the mining company for a period reached $3 billion . The crypto crashes, the value of the mining company 100 million dollarslowered it.

Moreover core Scientificwas also affected by Celsius’ bankruptcy. coreAnd Celsius There were problems in the agreements and services made between them. The two still continue their legal fight.

Mining This bankruptcy, which also hit the industry, fueled the troubled days for Bitcoin. Thousands of crypto investors were victims of this situation and suffered a lot of damage.

nowadays core Scientific states that it wants to exit the bankruptcy process and that its liquidity conditions have improved. The mining company continues its preparations to exit the bankruptcy process and return to the industry.

It is thought that the company will generate millions of dollars in revenues due to the positive crypto market. Therefore, the mining company is making plans to get back on its feet, relying on its accumulated and future revenues.

Even though Core returns to the industry, it leaves a question mark on whether it can attract customers as before.