A bankruptcy is a financial failure that may be accompanied by a number of crimes. With the Fed’s application of quantitative tightening, the cryptocurrency market is becoming increasingly saturated with them. In fact, several cryptocurrency goliaths are imitating Terra (LUNAdownfall. )’s
Following the collapse of LUNA, Three Arrows Capital is in danger.
Twitter user Laurence shared a picture of five prominent bitcoin companies’ logos. One thing unites all of these businesses: the fault! The first logo that stands out is that of cryptocurrency hedge firm Three Arrows Capital, then Terra (LUNA). In fact, Three Arrows Capital displayed signals of approaching bankruptcy after the failure of the stablecoin TerraUSD (UST) and the cryptocurrency LUNA.
Three Arrows Capital, based in Singapore, was established in 2012 by Zhu Su and Kyle Davies. A number of high net worth individuals and several institutions received the company’s crypto fund services. Assets worth billions were managed by Three Arrows Capital, which was also connected to the UST stablecoin and the LUNA token. The business once obtained a $670 million loan.
It was totally unable to pay back its debt due to the decrease in pricing. Since then, Three Arrows Capital has had difficulty meeting the demands of both its clients and its creditors. Do Kwon, the creator of Terra (LUNA), is being charged with money laundering. The collapse of the Terra system would have resulted from this money laundering within Terraform Labs.
Three large lending platforms are suffering.
BlockFi, Celsius, and Uprise are more crypto industry titans who are on the verge of going out of business. Two significant sites for crypto financing are BlockFi and Celsius. These services allow users to lend and borrow cryptocurrency with the potential to earn. BlockFi lost $80 million when it ran into problems after lending money to Three Arrows Capital.
The platform was also hacked, and $90 million was taken. It had to reduce its personnel in June, and as a result, its value has decreased by more than $2 trillion. Regarding the 2017-founded Celsius platform, it ran into a number of issues that forced it to halt withdrawal and trading activities. Customers cannot access their holdings because the platform is currently locked with more than $11.8 billion in funds.
Uprise, a Korean firm, recently disclosed that it had lost 99% of its clients’ funds. The trading platform powered by artificial intelligence made the mistake of using the cryptocurrency funds it had raised to wager on the LUNA token. Unfortunately, she was unsuccessful in winning her bet, and as a result, her clients’ money—$20 million—was also lost. She is currently having financial issues as a result.
Following the demise of Terra (LUNA), it appears that Three Arrows Capital, BlockFi, Celsius, and Uprise are the next wave of crypto-giants to go under. This is not a surprise to some in the crypto industry because these initiatives relied on “cheap money,” which they no longer have access to as market liquidity pressure rises. in danger.
