Cryptocurrency companies owe over $50 billion to investors and creditors
- Terra’s symbolic crash in May cost investors $40 billion.
- Crypto lender Celsius and exchange Voyager recently filed for Chapter 11 bankruptcy.
- The co-founders of 3AC are hiding from their creditors, to whom they owe billions of dollars.
A number of organizations involved in the cryptocurrency industry, including Celsius Network, Terra, Voyager Capital, and Three Arrows Capital, have seen their outlook deteriorate in recent months. The combined debt owed to investors and creditors by the four companies is significantly over $50 billion.
Frontrunner Terra is responsible for the loss of $40 billion in investor funds caused by the catastrophic drop in its tokens in May. This event led to a whirlwind of authorities around the world demanding stricter regulation on cryptocurrencies, especially stablecoins.
The cryptocurrency lending platform known as Celsius, which ceased all withdrawals a month ago and filed for bankruptcy the day before yesterday, has a $1.2 billion hole in its balance sheet. dollars and said it owed consumers a total of $4.7 billion.
Another cryptocurrency company, Voyager Digital, which had just filed for bankruptcy, has more than 100,000 creditors and owes them a total of $1.3 billion. Due to the uncharted nature of the actions taken by the two companies, they will be subject to scrutiny by lawmakers, industry members and, most importantly, creditors who want their money back.
Finally, Three Arrows Capital co-founders Zhu Su and Kyle Davies flee from the company’s furious creditors, to whom it owes billions of dollars. An emergency order to freeze the assets of the crypto hedge fund has been approved by a judge. The company’s liquidation director, Teneo, was also granted permission to subpoena Su and Davies of Three Arrows.