The recent liquidation of industry-leading cryptocurrency platforms, such as Voyager and Bittrex, has sparked concerns among investors about the longevity of the digital finance sphere and the regulatory landscape. As a result, a new negative trend is emerging, leaving investors uncertain about the future of their investments.
Voyager Digital filed for Chapter 11 bankruptcy protection on July 6th, 2022, becoming one of the casualties of chaos in the digital financial markets. The catalyst for Voyager’s failure was its exposure to Three Arrow Capital, a crypto hedge fund that went bankrupt a week before the platform filed for bankruptcy. Voyager’s attempts to rebound, including buyouts from FTX and Binance U.S., ultimately failed, resulting in the collapse of both deals.
Similarly, Bittrex announced its filing for Chapter 11 bankruptcy protection, citing liabilities worth up to $500 million – $1 billion, with over 100,000 creditors awaiting payments. The platform had previously announced plans to close its subsidiary operation in the United States on April 30th, citing regulatory issues from the Securities and Exchange Commission (SEC). While Bittrex Global will continue operations for customers outside the U.S. territory, the crash indicates fragility and potential risk in the future.
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Source: Cryptonews
