the market of cryptocurrencies it is going through a downward stage pushed, mainly, by world inflation. However, the mismanagement of individual companies has also scared off investors, causing distrust and general chaos.
This has been the case for two digital currency lenders, Celsius Network y Voyager Digitalwho have collapsed in recent weeks and even their founders have fled.
The case of Celsius Network
Celsius Network was present during the intense fall of last June. They offered great passive income to investors, but “extreme market conditions” led to pause all withdrawals to their users, causing, of course, instability.
Now, a month later, Celsius has filed for bankruptcy and has invoked Chapter 11 of the US Bankruptcy Code to provide the Company with an opportunity to stabilize its business and consummate a restructuring transaction.
“This is the right decision for our community and our company,” said Alex Mashinsky, co-founder and CEO of Celsius Network. “We have a strong and experienced team to guide Celsius through this process. I am confident that when we look back on Celsius’s history, we will see it as a defining moment, where acting with determination and confidence served the community and strengthened the company’s future to continue operating.”
Now, there will be two new directors at the company, David Barse and Alan Carr. They will have $167 million in cash on hand to turn the company around. It will be enough?
Voyager Digital on the run
Similarly, Voyager Digital it had gone bankrupt just a week ago and his hedge fund Singapore Three Arrows Capital (3AC) had gone through the same bankruptcy process.
Sadly, according to court documents filed recently in New York, the fund’s co-founders, Zhu Su and Kyle Davies, appear to have fled: lawyers for the fund’s plaintiffs say their whereabouts are “currently unknown.”
With $10 billion in assets, a court in the British Virgin Islands ruled that Three Arrows Capital use that money to pay off its debts. However, all the coordination has been with the lawyers and the defendants have not appeared or in Zoom meetings.
CNBCwhich is watching the case closely, has even noted that the fund’s Singapore offices “are empty.”
We recommend you METADATA, RPP’s tech podcast. News, analysis, reviews, recommendations and everything you need to know about the technological world. To hear it better, #StayHome.