City Arrow Financial News

To allay worries that the crypto-exchange would have been vulnerable to a liquidity constraint, Coinbase has asserted that it has “no financing exposure” to the bankrupt Celsius Network, Three Arrows Capital (3AC), or Voyager Digital.

Cryptocurrency exchange Blockchain.com is laying off one-quarter of its workforce, the latest business in the digital-assets sector to scale back following a sharp decline in cryptocurrencies.

Crypto startup Blockchain.com says it is laying off 25% of its staff, citing harsh market conditions.

Southeast Asia-focused cryptocurrency exchange Zipmex has suspended withdrawals, the company said in a tweet on Wednesday night, with an executive of its Thai affiliate citing liquidity difficulties at crypto lenders Babel Finance and Celsius.

Singapore crypto exchange Vauld Group is seeking a moratorium against its creditors — a move that would give the troubled lender more time to restructure its business after collapsing asset prices halted operations earlier this month.

Department heads at Coinbase have weighed in on the market downturn amid solvency concerns around Three Arrows Capital, crypto lending firm Celsius, and Voyager Digital, saying the crypto exchange had “no financing exposure” to the companies.

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Get your daily, bite-sized digest of cryptoasset and blockchain-related news – investigating the stories flying under the radar of today’s crypto news.

Court documents that describe the insolvency of failed crypto hedge fund Three Arrows Capital, also known as 3AC, may be overestimating the value of the firm’s remaining assets — specifically, its exposure to crypto options exchange Deribit. 

According to Twitter user @DrSoldmanGachs, a self-proclaimed creditor of troubled Singaporean crypto hedge fund Three Arrows Capital (3AC), the now-defunct entity allegedly owes $2.8 billion in claims, as discovered through a recent 3AC creditors meeting. In addition, the claim amount could be understated, as many have either not made their claim or have not disclosed their claim amounts for reasons of confidentiality.

Ravi Menon, the managing director of the Monetary Authority of Singapore, or MAS, said companies often labeled by the media in connection to the recent market volatility as “Singapore-based” were not representative of the country’s approach to crypto regulation.

Su Zhu, the co-founder and CEO of bankrupt Three Arrows Capital (3AC), is reportedly amongst the creditors that filed claims against the embattled crypto hedge fund.

As a crypto winter ravaged the entire cryptocurrency ecosystem in the first half of the year, Crunchbase, in its newly published report, found that in the last six months, there was a decline in investment in VC-backed crypto service providers.

With coin prices still very tentatively recovering and some even forecasting the end of crypto winter, optimists will hope that the darkest days of the crypto crunch are behind us – but things are still hot in the world of the bankrupt duo Celsius (CEL), a crypto lender, and Three Arrows Capital (3AC), a major crypto hedge fund.

Traders hoping to recoup their funds from failed cryptocurrency exchanges anytime soon are likely to end up disappointed, legal experts tell CNBC.

The liquidators of failed crypto hedge fund Three Arrows Capital (3AC) have filed an application in the High Court of Singapore for a stay on claims against 3AC and access to the company’s Singapore headquarters. The liquidators said in the 1,157-page document that a court decision is needed in light of the number legal proceedings that may arise in the near future and the “virtual radio silence from the management/directors of the Company.”

Penetration of the crypto space has decreased; venture capital firms' investment shrunk nearly 25% from a record $12.5 billion invested in the first half of last year to about $9.3 billion in the first six months of this year.

Embattled crypto brokerage firm Voyager Digital recently sought permission to process user withdrawals from the Federal Bankruptcy Court.

Crypto lender Celsius Network reveals $1.19 billion hole in bankruptcy filing

Bitcoin climbed almost 8% in the final three days of the work week, while Ether surged 20%. Neither of the two dominant tokens has set a new low point in this bear market for almost a month. Bitcoin has been hugging the closely watched $20,000 round number, while Ether is hovering near $1,000. The relative stabilization in the charts is fueling hopes that contagion may have run its course following the spectacular collapse of tokens on the Terra blockchain, a wipeout that also sent hedge fund Three Arrows Capital and brokerage Voyager Digital into bankruptcy court. While much of the crypto world’s leverage is not recorded on blockchains, and therefore hidden from scrutiny, what is visible is encouraging, according to James Check, lead analyst at Glassnode.

Celsius Network listed a $1.19 billion deficit on its balance sheet in a bankruptcy court filing on Thursday, a day after the cryptocurrency lender filed for Chapter 11. New Jersey-based Celsius froze withdrawals last month, citing «extreme» market conditions, cutting off access to savings for individual investors and sending tremors through the crypto market. In the filing at the U.S. Bankruptcy Court for Southern District of New York on Thursday, Celsius also said it had $40 million in claims against Singapore-based Three Arrows Capital, a crypto hedge fund that filed for bankruptcy earlier this month.