the Terra crash in May precipitated the demise of some of the biggest crypto firms. FTX’s fall may start a fresh surge of insolvencies, with BlockFi leading the pack.
Here is a look back at some big companies that had to file for bankruptcy during this bear market.
July 1st, Three Arrows Capital
The native token of Terra LUNA had substantial investments. Investment from Three Arrows Capital before it nearly vanished in May.
The company filed for section 15 insolvency in a New York court. It is generally only available to businesses operated outside of the United States. Records revealed that the company owed its creditors $3.5 billion.
July 5, Voyager Digital
Crypto broker Voyager Digital submitted a Chapter 11 insolvency petition. The petition was submitted to a New York court a few days after it stopped accepting withdrawals.
FTX announced that it would acquire the assets of Voyager for $1.4 billion. Everything appeared to be going according to plan. In October, Voyager urged creditors to agree to a court-approved FTX transaction.
Voyager has reopened the asset bidding process since then. Binance.US is preparing to bid after making a $50 million offer that FTX rejected.
September 22nd, Compute North
Compute North, a hosting company, declared bankruptcy under sector 11. it was due to the challenging mining economics. Bitcoin miner Marathon, a principal customer, said its activities would be untouched.
Compute North auctioned off many of its assets while this was happening. First, two mining facilities worth $5 million to a previous lender. Then $1.55 million in containers to Crusoe and two other locations to DCG’s Foundry Digital.
November 11th FTX Group, Alameda Research, And Numerous Others
Alameda Research and FTX US are two of the more than 100 corporate affiliates of FTX that have declared bankruptcy. While FTX may have over a million debtors, its top 50 creditors are owed more than $3 billion.
Genesis Global Capital revealed it had $175 million locked up on the FTX platform. Genesis warned that it might have to file for bankruptcy as it struggled to secure new funding.
November 28th BlockFi .
After FTX’s fall, the crypto lender BlockFi halted withdrawals. It started investigating what had transpired. FTX US was a creditor with $275 million in unsecured assets in BlockFi’s bankruptcy. This claim appears to be from a credit line stopped a few months earlier.
The company stated in a news release that it anticipates having enough cash. Cash to maintain some activities during the reorganization process.
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