5 Bangkrut Crypto Companies Throughout 2022, From 3AC To Compute North

Three Arrows Capital. (Photo; Doc. InvestorPlace)

YOGYAKARTA The crypto industry got a sizeable contraction in 2022. Various shocks such as macroeconomic sentiment, the crypto winter phase to the spirit of the Terra ecosystem made the crypto business unstable. As a result, many crypto companies went bankrupt this year.

So, what crypto companies will file for bankruptcy in 2022? Check out the full information below.

5 Bangkrut Crypto Company in 2022

Compiled by VOI from various sources, Wednesday, November 30, 2022, here are five crypto companies that have officially gone out of business.

Three Arrows Capital (3AC) is a Singapore-based crypto investment company. The company submitted a bankruptcy application to the US Bankruptcy Court for the Southern District of New York.

Adapting Reuters, 3AC is one of the investors with the highest profiles affected by the sharp sell-off in the crypto market. They started having financial problems after the Luna and UST ecosystem collapsed in early May.

In mid-June this year, 3AC failed to fulfill some margin calls and was eventually liquidated in some bitcoin and ethereum trading positions. Not only that, some creditors, such as Voyager Digital, urged 3AC to pay off their debts.

The crypto company that is also experiencing bankruptcy is BlockFi. The company has proposed a bankruptcy mechanism or bankruptcy Chapter 11 in the US on Monday, November 28, 2022.

BlockFi went out of business due to a domino effect from the fall of the crypto platform FTX founded by Sam Bankman-Fried.

The crypto lending company has suspended disbursement of consumer funds due to FTX, Alameda, and dozens of its affiliates filed for bankruptcy on November 11.

FTX is a centralized and leading cryptocurrency exchange platform that specializes in derivative and leverage products. FTX proposed a bankruptcy mechanism or bankruptcy of Chapter 11 on 11 November.

According to an AFP report, the FTX crypto exchange collapsed as the price of the FTT crypto token dropped drastically.

The cryptocurrency lending platform Celsius filed for bankruptcy in July 2022 using the US Bankruptcy Law Chapter 11. This means that Celsius wants protection so that it can operate despite its bankruptcy status.

Quoted from CNBC, Celsius cash is USD 167 million to support temporary operations.

In addition to the four crypto brokers above, Bitcoin (BTC) mining hosting company Compute North has filed for bankruptcy chapter 11 amid increasing pressure on companies due to crypto winter effects and rising energy costs.

Compute North CEO Dave Perrill has also resigned but will remain on board of directors.

The company filed for bankruptcy Chapter 11 at the United States Bankruptcy Court for the South District of Texas in mid-September this year.

Under the submission of Chapter 11, the company was still able to maintain its operations when drafting plans to pay creditors. The filing reportedly outlines that Compute North owes around $500 million to 200 creditors, while its assets are said to be worth between 100 million and 500 million US dollars.

Compute North offers large-scale crypto mining hosting services and facilities, hardware, and a BTC mining pool. It is one of the largest data center providers in the US and has well-known partners in the BTC mining sector, such as Compass Mining and Digital Marathon.

The two companies have issued statements via Twitter, noting that with the information they have at this stage, their business operations will continue as usual.

The Compute North staff told us today that bankruptcy filing should not interfere with business operations. We will continue to monitor the situation and will provide further updates when available," Compass Mining said.

That's the information about crypto companies that went bankrupt this year. To get news up to date, keep watching VOI.id