Crypto Lender Genesis Files For Bankruptcy: Here Are The Companies That Have Collapsed So Far


Last year’s crypto crash continues into 2023, as a number of major crypto companies collapse or suspend operations – here’s a look at that damage so far.


January 20: Genesis, a leading cryptocurrency lender, announces that it has filed for Chapter 11 bankruptcy, another victim of the FTX Collapse.

December 21: Core Scientific, one of the largest publicly traded bitcoin mining companies, has filed for bankruptcy with Passives up to $1.3 billion for his 1,000 to 5,000 creditors, although he continues his mining operations.

November 28: BlockFi, another top cryptocurrency lender, is filing for bankruptcy following the collapse of FTX, with which it had significant financial ties, and lists $1.3 billion in liabilities and ceases operations.

November 11th: FTX, a leading volume exchange trading platform that has become more than an exchange marketplace with retail investors able to trade crypto derivatives, has announced that it is going bankrupt, sending waves of shock to an already damaged crypto industry with its Passives reaching up to $9 billion while its CEO Sam Bankman-Fried faces criminal charges.

August 9: Hodlnaut, a Singapore-based crypto lender, suspends withdrawal, token trading and deposits citing “market conditions,” and several days later files an application for creditor protection in the High Court of Singapore.

July the 5th : Voyager Digital, a crypto broker, files for Chapter 11 following a $660 million default by Three Arrows Capital, a crypto hedge fund, suspending withdrawals days before going bankrupt, and now owes 1.3 billion dollars to its 100,000 creditors.

July the 5th : Three Arrows Capital (3AC), a Singapore-based crypto hedge fund that manages nearly $10 billion in assets, files for Chapter 15 bankruptcy to seek creditor protection following the cryptocurrency meltdown popular TerraUSD, in which 3AC had a significant investment.

May 12: TerraLabs, a popular blockchain with its TerraUSD (UST) cryptocurrency pegged to the US dollar, halts operations as a cryptocurrency drops to 35 cents and its companion token LUNA – intended to stabilize the price of UST – falls from $80 to below 10 cents, triggering a crash in the crypto and erasure $1 trillion in assets as its founder Do Kwon faced a arrest warrant by South Korean officials.

Key Context

The crypto industry was a Wild West and has suffered various crashes since the invention of the first cryptocurrency, Bitcoin (BTC), in 2008. Most of the crashes all trace back to Bitcoin, the most popular cryptocurrency nowadays. In 2011, Bitcoin fell from $32 to $0.01 after Mt. Gox, then the major crypto exchange, disclosed a security breach that led to the flight of 850,000 BTC. From 2013 to 2015, Bitcoin suffered losses again and rose from $1,000 to $170 in just two years after Mt. Gox suspended withdrawals in 2014 and US financial authorities began to question Bitcoin. and are looking to start regulation.

Further reading

Crypto Crash Intensifies Amid Bankman-Fried Industry ‘White Knight’ Fall (Forbes)

Crypto market tops $1 trillion for first time in months as Bitcoin recovers from FTX-induced crash (Forbes)


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