Last Updated on 3 months by newseditor
Several cryptocurrency businesses have recently declared bankruptcy; many of these businesses took on excessive risk, which resulted in their implosion when the market fell. The possibility of loss or theft is the main drawback of cryptocurrencies, and it is considerably more difficult to control when a cryptocurrency corporation is keeping your money. Two significant cryptocurrency trading companies, Voyager and Celsius, filed for bankruptcy in July 2022.
3AC was one of the world’s best-known cryptocurrency hedge funds as of March when it was managing around $10 billion in assets. Since the price of cryptocurrencies has fallen, the company is now proceeding with a bankruptcy filing. Furthermore, it lost all of its assets due to a highly dangerous trading technique, making it incapable of paying back its creditors. Digital currencies have declined in value significantly. The latest market downturn that has seen millions of dollars taken off the market, has devastated Three Arrows Capital and made its liquidity crisis public.
3AC Is Beginning To Suffer A Chain Of Pain
3AC had a long list of creditors, or businesses, whose financial future depended on the company’s capacity to at least survive. Over the past month, the crypto market has fallen by more than $1 trillion. This is putting a lot of pressure on investors who have focused their investments on firms like 3AC. Perhaps the suffering for Three Arrows Capital is just getting started. As a result of 3AC’s inability to repay Voyager Digital’s roughly $670 million loan, the digital asset brokerage filed for Chapter 11 bankruptcy protection. The breakdown of the Terra ecosystem appears to have been the catalyst for Three Arrows Capital to collapse, which sent shockwaves across the cryptocurrency market. A total of $2.8 billion is allegedly still owed to investors by the bankrupt fund.
Investing In Cryptocurrency Is Difficult Due To Bankruptcy
Voyager and Celsius’s failures serve as a reminder of the special dangers that cryptocurrency traders incur when they invest their money in these businesses. Investor losses from just these two occurrences might have exceeded $1 billion. Cryptocurrencies investors should be mindful of any risks linked to the exchange they are utilizing in the wake of Voyager and Celsius customers being unable to withdraw their crypto assets.
Does 3AC Intend To Expand To The UAE?
The founders have not officially disclosed the company’s next location, however, one of the lawyers during the conversation said that the UAE would be their eventual target market to expand. Su Zhu further added that they have the intention to relocate their business to Dubai. As a result, they must first visit Dubai as soon as possible to determine if they will move there as originally intended or if something else awaits them.