After Meltdown, these Crypto firms have experienced difficulties and problems

Crypto companies, which saw a boom during the COVID-19 pandemic, have subsequently struggled as a result of a downturn sparked by the demise of a significant token in May and a general risk-off attitude.

Some of the businesses that have lately had problems are listed below:

Terraform Labs

The South Korean firm that created the dollar-pegged stablecoin TerraUSD and its linked token Luna saw its value plummet in May, causing sell-offs and setting off a domino effect.

Co-founder Do Kwon of the company revealed a “rescue plan” in May that included extra outside funding and the rebuilding of TerraUSD so that it is backed by reserves rather than depending on an algorithm to maintain its 1:1 dollar peg.

On June 21, a representative of South Korea’s Supreme Prosecutors’ Office announced that many Terraform employees had been placed on a no-fly list and are unable to leave the country.

Voyager Digital

The US-based cryptocurrency lender announced its bankruptcy filing on July 6.

Voyager estimated in its Chapter 11 bankruptcy petition that company had more than 100,000 creditors, assets worth between $1 billion and $10 billion, and liabilities of the same amount.

Three Arrows Capital (3AC)

According to a court document filed on July 1, the Singapore-based cryptocurrency hedge fund requested protection from creditors under Chapter 15 of the U.S. bankruptcy code, which permits foreign debtors to protect U.S. assets.

3AC’s liquidators received authority from a U.S. court on July 12 to issue subpoenas and lay claim to its assets, citing the fact that the company’s founders who are missing in action no longer have any influence over its finances.

Celsius Network

based in New Jersey On July 13, Celsius announced that it had filed for bankruptcy. According to a court filing, it listed projected assets and liabilities on a consolidated basis in the range of $1 billion to $10 billion.

The Vermont Department of Financial Regulation (DFR) had stated the previous day that it thought Celsius was “seriously insolvent” and lacked the resources to honour its debts to consumers and other creditors.

Vauld

On July 4, the Singapore-based business said that it has halted withdrawals for its more than 800,000 clients. Vauld said in a blog post that unstable market circumstances were posing “financial issues” to the company.

The company stated that “the financial challenges of our important business partners are inexorably hurting us,” and that clients had withdrew about $200 million since June 12.

Babel Finance

The Hong Kong-based cryptocurrency lender announced on June 17 that it had temporarily suspended withdrawals and redemptions of crypto assets while it rushed to pay its customers.

According to the company, “Babel Finance is experiencing unprecedented liquidity difficulties as a result of the current scenario,” stressing the extreme volatility of the market for digital currencies.

Coinbase Global Inc

On June 14, the bitcoin exchange said that it would lay off around 1,100 employees, or 18% of its staff.

“We appear to be entering a recession after a 10+ year economic boom. A recession could lead to another crypto winter, and could last for an extended period,” CEO Brian Armstrong said in a blogpost.