The largest crypto bankruptcies to date
HalfDime
Posts: 388 ✭✭✭✭
The largest crypto bankruptcies to date, both in terms of financial impact and industry significance, include:
FTX (2022): One of the most prominent crypto exchanges, FTX filed for bankruptcy in November 2022 after a liquidity crisis revealed an $8–9 billion deficit. Over a million creditors were affected, making it the largest and most high-profile collapse in the crypto sector.
Mt. Gox (2014): At its peak, Mt. Gox handled over 70% of all Bitcoin transactions. It declared bankruptcy after losing 650,000–850,000 Bitcoins (worth billions today) in a massive hack.
Three Arrows Capital (2022): This major crypto hedge fund managed about $10 billion in assets before filing for bankruptcy, owing $3.5 billion after losses tied to the collapse of the Terra ecosystem and other risky investments.
Genesis Global Captial (2023): Genesis, a leading crypto lender, filed for bankruptcy owing $3.4 billion, largely due to exposure to other failed crypto firms like Three Arrows Capital and FTX.
Celsius Network (2023): Celsius, a crypto lending platform, filed for bankruptcy after the collapse of TerraUSD and Luna, leaving hundreds of thousands of customers unable to withdraw funds.
Voyager Digital (2022): Voyager, another major crypto lender, filed for bankruptcy in July 2022, impacting customer deposits and resulting in a court-approved liquidation plan.
BlockFi (2022): BlockFi, a crypto lender, filed for bankruptcy shortly after FTX, citing its reliance on a $400 million credit line from FTX to stay afloat.
Other notable bankruptcies include QuadrigaCX (2019), Core Scientific, Babel Finance, and Hodlnaut, each with significant losses but on a smaller scale compared to the firms above. These bankruptcies collectively highlight the risks and interconnectedness within the crypto industry, with many failures in 2022–2023 triggered by market downturns, risky lending practices, and exposure to other failing firms.
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Here is a new one that adds to the list:
Linqto (2025), a private investment platform specializing in pre-IPO firms, has filed for Chapter 11 bankruptcy in the United States. The company, which holds 4.7 million shares in Ripple, a blockchain-based payment protocol, has been under scrutiny from the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) for alleged non-compliance with securities laws. The bankruptcy filing comes after internal investigations revealed significant operational issues within the company.
Comments
Can't wait for the next bankruptcy. I am sure it's certain to be "Bigly". SMH!
The whole worlds off its rocker, buy Gold™.
BOOMIN!™
Wooooha! Did someone just say it's officially "TACO™" Tuesday????
Core Scientific (CORZ) came out of bankruptcy and was recently purchased by Coreweave (CRWV) in an all-stock deal valued at slightly over $20 / share.
Wasn't there an exchange associated with SVB and SBF as well?
I knew it would happen.