there’s no bank that can go under and you always own your money

https://buybitcoinworldwide.com/bankruptcies/

The crypto industry has seen some large bankruptcies. We’ve made a list here and documented all the numbers.

850,000 BTC Chapter 15

Mt. Gox, a Tokyo-based cryptocurrency exchange operating from 2010-2014, handled over 70% of Bitcoin transactions. In 2014, after a major hack compromising between 650,000 to 850,000 Bitcoins, it declared bankruptcy. A lengthy legal battle concluded in 2021 with a rehabilitation plan for creditors.

FTX $9 Billion USD Chapter 11

The bankrupt FTX crypto exchange recovered $7.3 billion in assets, a rise of $800 million since January. FTX is considering its future and a possible reboot after issues under ex-founder Sam Bankman-Fried, who faces fraud charges.

Three Arrows Capital $3.5B Chapter 15

Liquidators for the bankrupt crypto hedge fund Three Arrows Capital claim its founders, Kyle Davies, and Su Zhu, are not cooperating with asset recovery. Davies argues that FTX and Alameda Research caused their downfall. Despite challenges, liquidators have recovered some assets, including $35 million and multiple cryptocurrency tokens. Three Arrows filed for bankruptcy following the collapse of cryptocurrencies Luna and TerraUSD in 2022.

Genesis $3.4B Chapter 11

Genesis Global Capital, a crypto lending unit of venture capital firm Digital Currency Group (DCG), filed for U.S. bankruptcy while owing $3.4 billion. Genesis plans to sell assets to repay creditors. Its parent, Genesis Global Holdco, and Genesis Asia Pacific also filed for bankruptcy. The largest creditor, crypto exchange Gemini, claims $765.9 million.

BlockFi $1.3B+ Chapter 11

BlockFi filed for Chapter 11 bankruptcy after FTX’s collapse. With liabilities and assets between $1-$10 billion, it owed FTX US $275 million. BlockFi previously faced liquidity issues due to Three Arrows Capital’s implosion and significant exposure to FTX.

Core Scientific $1.4B Chapter 11

Core Scientific, post-bankruptcy, is expanding with 900 additional Bitcoin mining machines through LM Funding. By the end of April, LM’s total machines will reach 3,900. Despite the bankruptcy, Core continued operations and recently proposed a new president.

Voyager Digital $1.3B Chapter 11

Bankrupt crypto lender Voyager Digital will return 35% of cryptocurrency deposits to customers after Binance.US’s failed buyout. U.S. Bankruptcy Judge approved Voyager’s $1.33 billion liquidation plan. Withdrawals may start by June 1. Future distributions depend on litigation outcomes.

Celsius 1.2 billion USD Chapter 11

Bankrupt crypto lender, Celsius Network, has selected Fahrenheit’s proposal to manage a new entity owned by its creditors, leading Celsius out of bankruptcy. Fahrenheit will establish and operate the new company (NewCo). Celsius previously filed for Chapter 11 protection after industry growth during 2020.

Cryptopia $16 million USD Chapter 15

Cryptopia, a New Zealand crypto exchange, announced the third phase of its reimbursement plan following a 2019 hack costing users over $15 million. Verified customers will soon receive their outstanding balances. Meanwhile, FTX faces bankruptcy challenges.

Compute North $400 million USD Chapter 11

Compute North’s reorganization plan, settling $250 million in secured debt, was approved by a federal judge. The North American crypto mining company reached terms with 11 firms, including Marathon Digital Holdings, after filing for bankruptcy.

Bittrex Global $500M - $1B Chapter 11

Bittrex filed for Chapter 11 bankruptcy a month after ceasing U.S. operations. This follows a $53 million fine by the U.S. Treasury and a lawsuit from the SEC. Despite struggles in the U.S., Bittrex’s international operations remain unaffected.

Blockchain Global $15B Voluntary administration

Blockchain Global (BGL), the parent company of the defunct Australian crypto exchange ACX, owes $15 million after collapsing. The Victoria Supreme Court froze 117.33 Bitcoin linked to BGL and ACX Tech. BGL later entered voluntary administration. Former director Sam Lee distanced himself from BGL’s operations. ACX’s sudden shutdown in 2020 left many investors out of pocket.

Babel Finance $800M Restructuring

Hong Kong-based Babel Finance plans to launch a decentralized stablecoin, Babel Recovery Coins, to repay creditors. The DeFi project features stablecoin HOPE and Light Token, backed initially by Bitcoin and Ethereum. Babel faced significant losses after the Terra ecosystem meltdown.

Hodlnaut $267M Judicial management

Singapore-based crypto lender Hodlnaut seeks potential buyers after creditors rejected a restructuring plan, pushing for liquidation. Hodlnaut owes $160 million, with most assets on bankrupt exchange FTX. Hodlnaut faced challenges, and reduced workforce amid investigations.

Zipmex $53M Debt Relief

Crypto exchange Zipmex seeks a two-month moratorium extension in Singapore due to an investor, V Ventures, missing a $1.25 million payment for a takeover. This delays customer withdrawals following Zipmex’s bankruptcy after Terra’s collapse.

It can also be worthless from one day to the next. I hold BTC, I’ve lost £300 this week. I wouldn’t want to put my whole salary into BTC.

Except for all those cryptocurrency exchanges that keep going down and taking everyone’s money