The post Most notable crypto bankruptcies in 2023 appeared on BitcoinEthereumNews.com.

Explore the list of crypto bankruptcies in 2023, including detailed insights into the collapse of major exchanges. It’s quite evident that crypto had one of its worst years in 2022. The cascading collapse of two industry giants, Terraform Labs (responsible for LUNA and UST) and FTX, drove one of the harshest crypto winters in recent history. It eventually led to many bankruptcies, layoffs, and shutdowns across the market. So, 2023 mostly saw the fallout from the previous years, as the major bankruptcy proceedings from previous market leaders like Celsius, Voyager, Three Arrows Capital (3AC), BlockFi, and FTX progressed into different stages. Still, some notable crypto bankruptcies and exchange failures made it into the news. Let’s take a look at the list of crypto bankruptcies and failures of 2023. Notable crypto bankruptcies Genesis The year 2023 began under a cloud for the cryptocurrency sector, with Genesis, a prominent crypto lending subsidiary of Digital Currency Group, declaring bankruptcy. The company’s troubles began in mid-2022 following a significant loan loss to an unnamed counterparty, later identified as Three Arrows Capital, another entity that filed for bankruptcy in July 2022. FTX have filed an outrageous settlement of $175m against Genesis Originally $3.9bn reduced to $2bn, which was paid by Alameda using customer deposits Alameda will be granted a general unsecured claim against GCC UCC needs to block this: FTX creds should rank higher + closer to… pic.twitter.com/hrgEuGryMZ — Sunil (FTX Creditor Champion) (@sunil_trades) August 17, 2023 Genesis’s vulnerabilities were further exposed by the collapse of FTX and Alameda Research in November 2022. This downfall had a domino effect on Genesis, which had $175 million in assets locked on FTX and a lending relationship with Alameda. The impact of these collapses was immediate and severe, leading Genesis to halt redemptions at its lending unit, signaling…

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Filed under: News - @ December 30, 2023 7:16 pm