Crypto collapse has claimed another victim, crypto lender Celsius Network has filed for bankruptcy as per reports.
The domino effect of crypto enthusiast hedge fund Three Arrows' collapsing was felt on Celsius that halted withdrawals to avoid a bank run as popular digital tokens fell sharply from record highs. Celsius froze withdrawals and transfers last month, citing "extreme" market conditions, leaving its 1.7 million customers unable to redeem their assets.
Celcius a crypto lender was valued at $3.25 billion last year, and managed as much as $24 billion worth of assets. Another crypto lender Voyager Digital Ltd had filed for bankruptcy on July 6 after suspending withdrawals and deposits.
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Voyager filed for Chapter 11 bankruptcy after suffering losses due to exposure to now defunct hedge fund Three Arrows Capital. A judge in New York bankruptcy court froze Three Arrows Capital’s remaining assets this week.
Digital assets have taken a big hit. Fed rate hikes, the Terra ecosystem meltdown and the collapse of crypto hedge fund Three Arrows Capital have all contributed to a 58% drop in Bitcoin in 2022.