Crypto Bankruptcies In 2022

The cryptocurrency market had a tough year in 2022. In April last year, the global cryptocurrency industry, excluding Bitcoin, had a market cap of $1 trillion, according to CoinMarketCap. By June 19, it was worth $464.7 billion. Here are some of the most notable crypto bankruptcies of 2022.

- JOYCEABAÑO; TIMOTHY A. CLARY

Three Arrows Capital

Headquarters: Singapore

Founded in: 2012

On July 1, 2022, crypto hedge fund Three Arrows Capital sought protection from creditors in the U.S. under Chapter 15 of the U.S. Bankruptcy Code, which allows foreign debtors to shield U.S. assets. The firm was one of the most prominent crypto hedge funds, managing about $10 billion in assets in March 2022. News of the bankruptcy surfaced after the Singaporebased company defaulted on a $650 million loan provided by crypto broker Voyager Digital. Advisers in charge of liquidating the fund said in a July 8 filing that the company’s founders Su Zhu and Kyle Davies hadn’t cooperated with them and that the founders’ whereabouts were unknown. The two allegedly refused to turn on their cameras and unmute their mics even when being addressed during a Zoom call. In a tweet on July 12, Zhu said that a “good faith” effort to work with the liquidators “was met with baiting.”

Voyager Digital

Headquarters: U.S.

Founded in: 2018