Investors shun FTX, Celsius, Blockfi and Voyager loans as doubts surface

Crypto debt trading firm Exclaim has reported that over a hundred institutional investors have been negatively affected by the FTX failure.

Those affected include companies such as BlockFi, Voyager and Celsius, which are looking to sell their debt rather than wait out a potentially lengthy bankruptcy process with no guarantee of recovery.

Investors want quick returns

according to recent reportsThe number of investors looking to divest from debt in crypto firms has increased recently, with some citing concerns about their stability and security. Investment,

Even if they suffer losses, investors have offered to sell their debt. Gave a loan of about ten thousand There were 23 claims posted at the time of writing, including 23 on BlockFi, 67 on FTX, 93 on Voyager and 9,072 on Celsius Network.

In an interview with WSL, Exclaim’s developer, Matt Sedigh, Having said Creditors are calling businesses from different parts of the world. The CEO noted that the creditors are headquartered in Taiwan, Hong Kong and China holding the bulk of the declared claims.

Many hedge funds and debt investors are dismissing these claims. Leading the charge are Contrerian Capital and Invictus Global, all of which have reportedly acquired a significant number of claims being sold.

Meanwhile, Celsius is ready to move on Extend time for users to submit claims, Some pointed out how lawyers get paid immediately while debtors have to wait.

ftx dumpster fire

The growing public knowledge of cryptocurrencies and their benefits has led to a significant expansion of the market recently. Several new exchanges have been launched in the crypto industry around the world, as well as essential progress has been made with the existing ones.

However, the crypto business has seen significant setbacks recently. According to new market research, the crypto sector has lost more than $100 million due to the failure of major crypto exchanges around the world, in addition to multiple hacks and price drops.

ftx crisis The Most Important Crypto Exchange of 2022 Is the Catalyst for Collapse and Multiple additional crashes,

After the collapse of FTX, BitcoinThe price has dropped from $20k to $16.5k per coin, its lowest level since 2020. According to CoinMarketCap, the entire sector is down by about 5%. As a result, large companies and their operations are vulnerable to severe liquidity issues.

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