The crypto industry has seen some large bankruptcies. We've made a list here and documented all the numbers.
Mt. Gox, a Tokyo-based cryptocurrency exchange operating from 2010-2014, handled over 70% of Bitcoin transactions. In 2014, after a major hack compromising between 650,000 to 850,000 Bitcoins, it declared bankruptcy. A lengthy legal battle concluded in 2021 with a rehabilitation plan for creditors.
Liquidators for the bankrupt crypto hedge fund Three Arrows Capital claim its founders, Kyle Davies, and Su Zhu, are not cooperating with asset recovery. Davies argues that FTX and Alameda Research caused their downfall. Despite challenges, liquidators have recovered some assets, including $35 million and multiple cryptocurrency tokens. Three Arrows filed for bankruptcy following the collapse of cryptocurrencies Luna and TerraUSD in 2022.
Genesis Global Capital, a crypto lending unit of venture capital firm Digital Currency Group (DCG), filed for U.S. bankruptcy while owing $3.4 billion. Genesis plans to sell assets to repay creditors. Its parent, Genesis Global Holdco, and Genesis Asia Pacific also filed for bankruptcy. The largest creditor, crypto exchange Gemini, claims $765.9 million.
Bankrupt crypto lender Voyager Digital will return 35% of cryptocurrency deposits to customers after Binance.US's failed buyout. U.S. Bankruptcy Judge approved Voyager's $1.33 billion liquidation plan. Withdrawals may start by June 1. Future distributions depend on litigation outcomes.
Bankrupt crypto lender, Celsius Network, has selected Fahrenheit's proposal to manage a new entity owned by its creditors, leading Celsius out of bankruptcy. Fahrenheit will establish and operate the new company (NewCo). Celsius previously filed for Chapter 11 protection after industry growth during 2020.
Blockchain Global (BGL), the parent company of the defunct Australian crypto exchange ACX, owes $15 million after collapsing. The Victoria Supreme Court froze 117.33 Bitcoin linked to BGL and ACX Tech. BGL later entered voluntary administration. Former director Sam Lee distanced himself from BGL's operations. ACX's sudden shutdown in 2020 left many investors out of pocket.
Hong Kong-based Babel Finance plans to launch a decentralized stablecoin, Babel Recovery Coins, to repay creditors. The DeFi project features stablecoin HOPE and Light Token, backed initially by Bitcoin and Ethereum. Babel faced significant losses after the Terra ecosystem meltdown.
Singapore-based crypto lender Hodlnaut seeks potential buyers after creditors rejected a restructuring plan, pushing for liquidation. Hodlnaut owes $160 million, with most assets on bankrupt exchange FTX. Hodlnaut faced challenges, and reduced workforce amid investigations.
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