Pump.fun is reportedly planning a $1 billion token sale at a $4 billion valuation, according to multiple sources. 

The S&P 500 rose 0.58% on Tuesday, extending its gains for a second day as tech stocks led the rally. Investors now await key labor market data later this week. Gold dipped 1.29% as strong U.S. job data signaled a resilient labor market, reducing rate-cut hopes and prompting profit-taking after Monday’s rally. The Coindesk Indices, which tracks the broader crypto market, rose 0.72%, with Bitcoin and Ether up 1.74% and 3.00%, respectively in the past 24 hours. Trade these markets and more with up to 500x leverage on Bybit MT5 using this 

Today’s top performer is MKR, up 8.8% after Spark expands to Optimism and Unichain, bringing Sky’s yield-bearing stablecoins to the Superchain ecosystem.

Sky (MKR), founded in 2014, is a DeFi platform evolved from MakerDAO, offering USDS stablecoin, token rewards, and easier governance. Users can upgrade DAI/MKR, earn yield, and trade crypto. 

, bringing Sky’s 4.5% yield-bearing stablecoins (sUSDC and sUSDS) to Ethereum’s Superchain. The move enhances on-chain savings and liquidity through Spark’s Liquidity Layer, allowing users to earn yield without bridging or complex setups. Backed by $2.6B in reserves and supported by the Optimism Collective, Spark enables seamless, composable DeFi across chains.

Check out the latest prices, charts, and data of 

Pump.fun is reportedly planning a $1 billion token sale at a $4 billion valuation, according to multiple sources. The memecoin launchpad, which enables users to mint Solana tokens instantly, has generated over $700 million in revenue and seen nearly 11 million tokens created with a combined $4.5 billion market cap. The token sale—open to both public and private investors—could launch within two weeks, signaling Pump.fun’s emergence as a major player in the crypto space.

Yesterday, BTC spot ETFs saw $317.1 million in net inflows, all from non-GBTC funds, while GBTC recorded no flow.

, its biggest yet, with 500,000 $ALICE tokens up for grabs across four waves starting June 3. Participants can earn points through weekly in-game quests, social activities, referrals, and competitions. The campaign runs until the launch of Chapter One: A New Adventure on June 17.

Beginner

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Pump.fun targets $1B raise at $4B valuation as memecoin launchpad nears token debut

Maple Finance is a decentralized capital marketplace that connects institutional borrowers with liquidity providers. Learn more about how it works here.

 (DeFi) has transformed lending and borrowing, yet many platforms struggle to deliver sustainable yields without excessive collateral requirements or speculative token incentives. This structural weakness has hampered DeFi's maturation and limited its appeal to both institutional capital and everyday users seeking reliable returns.

Maple Finance is responding to this need with a decentralized capital marketplace that brings professional credit standards to blockchain lending. This article examines Maple Finance's innovative features, its investment potential as it bridges institutional finance with the broader DeFi ecosystem and the tokenomics of its native governance token, SYRUP.

 is a decentralized capital marketplace that connects institutional borrowers with 

. It delivers transparent fixed-rate yields through professionally managed lending pools while maintaining rigorous credit standards and comprehensive risk management.

Maple Finance was founded by Sid Powell and Joe Flanagan, former banking and finance professionals who identified significant inefficiencies in legacy capital markets. Powell, now the CEO, brings expertise in institutional banking and structured credit, while Flanagan contributes operational knowledge from previous roles, including as CFO of Axsesstoday.

 Mainnet in May 2021, with Orthogonal Trading becoming the first pool delegate to manage Maple's initial 

 pool of $15 million. Since then, Maple Finance has originated over $4 billion in loans and established itself as a trusted DeFi lending platform.

Maple Finance targets the inefficiencies plaguing both traditional finance (TradFi) and DeFi lending markets. Conventional financial systems involve numerous intermediaries that inflate costs and restrict capital access, while most DeFi platforms tend to depend upon excessive collateralization. Its protocol aims to bridge this divide by bringing institutional credit standards to blockchain lending. 

By implementing professional underwriting, transparent 

 and proper governance, Maple Finance creates a lending ecosystem that satisfies both TradFi requirements and DeFi principles.

Maple's ultimate goal is to create a marketplace in which lenders earn sustainable yields derived from real economic activity, while qualified borrowers gain efficient capital access without traditional banking limitations. This creates a capital marketplace whose sophisticated financial practices operate alongside blockchain's inherent transparency and accessibility advantages.

Maple Finance operates through a sophisticated lending infrastructure that connects qualified borrowers with capital providers in a secure, transparent environment.

Maple's lending ecosystem consists of four main roles:

Central to Maple Finance's infrastructure are lending pools that are implemented as 

 following the ERC-4626 tokenized vault standard. This architecture ensures transparency while maintaining security for all participants.

The lending cycle begins when borrowers apply for loans and undergo evaluation. Maple Direct then performs due diligence and establishes suitable terms. Approved borrowers submit formal loan requests on-chain, receive capital upon final approval and maintain scheduled interest payments throughout the loan’s term.

Maple Finance maintains robust security with overcollateralized loans backed by high-quality digital assets in institutional-grade custody solutions. The platform's advanced monitoring system tracks collateral values around the clock across multiple price feeds.

If collateral values decline to predetermined margin call thresholds, borrowers receive automatic notifications, and must restore appropriate collateralization within 24 hours. Failure to meet this requirement triggers Maple Finance's liquidation protocols in order to protect lender capital.

Maple Finance often implements yield optimization strategies with borrower collateral to enhance overall returns, including 

 approaches. A portion of these additional yields flows back to lenders, boosting their effective returns beyond base interest rates.

Maple Finance offers a comprehensive financial product suite that’s designed to serve institutional and retail participants across the DeFi ecosystem.

Through its Blue Chip Secured pool, Maple Finance offers specialized Bitcoin yield opportunities accepting only BTC and ETH as collateral. Developed in 

, this product enables accredited investors to generate yield on Bitcoin while maintaining strong security, with collateral held by qualified custodians such as BitGo and Copper.

Maple Finance delivers institutional-grade lending opportunities that combine security with attractive returns. It features fixed yields of 10–20% APY that consistently outperform traditional DeFi markets. The platform ensures complete transparency in loan structures and collateral requirements while implementing rigorous professional credit assessment by experienced analysts. Diversified pool options allow lenders to select their preferred risk exposure balance and potential returns.

SyrupUSDC and syrupUSDT, Maple Finance's permissionless stablecoin lending products, represent deposits into institutional-grade lending pools. Launched in May 2024, these 

 allow users to earn high yields from secured loans to crypto institutions without 

 verification. With target APYs of approximately 15%, these products enhance returns through collateral staking strategies and commitment periods that boost rewards via commitment multipliers (1.5x for 3 months and 3x for 6 months). 

Maple Finance's borrowing service caters exclusively to institutional clients who pass rigorous approval processes. Qualified borrowers can access on-chain capital without traditional banking constraints, with fixed interest rates providing budget certainty.

The platform offers flexible collateral options and refinancing opportunities while maintaining transparent terms throughout the loan life cycle. Borrowers manage the entire process — from application to repayment — through Maple's streamlined web app interface.

Maple Finance has established itself as a leader in DeFi lending, facilitating over $5 billion in loans and growing its 

 beyond $1 billion. The protocol has successfully distributed nearly $60 million to liquidity providers, launched Syrup for permissionless access and unified its ecosystem through the SYRUP token.

For 2025, Maple aims to enhance token utility for stakers, scale institutional adoption through new credit products and grow Syrup.fi to $2 billion in TVL. Its road map includes expanding infrastructure to support lending in any asset (including 

), with the ambitious target of managing $100 billion in annual loan volume by 2030.

 unifying Maple Finance's ecosystem across its institutional and DeFi products. Launched through proposals MIP-009 and MIP-010, the token creates alignment between stakeholders while incentivizing platform participation.

Following implementation, 1.15 billion SYRUP tokens were minted at a 100:1 conversion rate from MPL, its legacy token, with supply projected to reach 1.228 billion by September 2026. The token enables staking for protocol revenue shares, exclusive governance rights, value capture from lending activities and conversion of earned 

This staking mechanism operates without lockup periods through a decentralized contract. Rewards come from both protocol revenue and 5% annual inflation, with 5 million SYRUP distributed to early stakers in the first 90 days. The Drips rewards program enhances earnings through compounding rewards, commitment multipliers and integration boosts.

Looking to trade Maple Finance tokens? Bybit now offers the SYRUPUSDT Perpetual contract for trading. To get started, you’ll first need to create a Bybit account, then fund it with cryptocurrency and navigate to the 

While Maple Finance demonstrates strong institutional adoption and growing integration within DeFi, investors must carefully weigh its potential against several risk considerations.

SYRUP may appeal to investors seeking exposure to institutional DeFi lending and the expanding RWA ecosystem. Its value proposition derives from actual financial activity rather than purely speculative mechanics, potentially providing some stability. However, investors are advised to consider their 

 before committing capital to this evolving protocol.

Maple Finance exemplifies the way that traditional financial expertise can thrive within decentralized systems. With its professional underwriting standards and transparent operations, the protocol demonstrates remarkable potential as institutional capital flows accelerate and the expansive RWA market continues its integration with blockchain technology.

Intermediate

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Maple Finance (SYRUP): Tapping into sweet yields with DeFi lending

Learn how to complete the Bybit KYC process step-by-step. Unlock full features, higher withdrawal limits, and ensure secure, compliant crypto trading.

If you're new to trading with Bybit or just getting started with crypto, you've probably come across the term 

, short for "Know Your Customer." But what exactly is KYC, and why is it necessary?

, a set of identity verification procedures that financial institutions and crypto exchanges — like Bybit — are legally required to implement. The goal of KYC is to confirm users' identities and assess their risk profiles. This practice enhances platform security in order to reduce risk of fraud or abuse, and ensures compliance with global regulations to prevent criminal activities such as money laundering and terrorist financing.

The Bybit KYC process is crucial for maintaining a safe and compliant trading environment. Completing your KYC verification on Bybit enables a more secure and streamlined trading experience, offering you access to full platform features, including the following:

Individual KYC is for personal users who want access to full features on Bybit, such as withdrawals, Earn products and Launchpad participation. It's fast and is usually fully processed within 48 hours. Business KYC is for corporate entities needing higher withdrawal limits or institutional access. It involves more rigorous checks, including UBO (Ultimate Beneficial Owner) identity and proof of business legitimacy. You cannot have both KYC types on the same account. If you switch to Business KYC, your Individual KYC will be removed.

This is designed for private users who trade or invest using their personal accounts.

When you complete Individual KYC on Bybit, you’re verifying your identity as an actual person. The process typically involves uploading a government-issued ID (like a passport or driver's license), a Proof of Address (such as a utility bill or an official bank statement) and a selfie or live video verification.

Bybit offers three different Individual KYC levels: 

. In order to gain access to all Bybit products and services, you'll need at least a Standard level of KYC (daily withdrawal limit ≤ 1M USDT). However, an Advanced or Pro level verification will grant you higher withdrawal limits (daily limit ≤ 2M USDT). Only one account per user can be utilized for KYC verification. The following are the different verification requirements according to each tier.

After completing KYC verification, you’ll have different withdrawal limits and benefits, depending upon your VIP level, with higher tiers unlocking higher 

 up to a daily limit of ≤ 30M USDT for VIP PRO 6 users and various 

 access to special products like Launchpad or Bybit Earn.

The process is usually fast — anywhere from 15 minutes to 48 hours, depending upon the tier and the quality of the documents submitted.

However, once you've verified as an individual, you cannot convert the same account to a business account later, as you would need to register a new one for KYB.

This is intended for legal entities, such as companies, funds or organizations.

Bybit's Business KYC is a more complex and formal process. It doesn’t just verify the entity — it also requires details about the people behind it, including the following:

The business’s jurisdiction and structure will influence how straightforward or complicated the process is.

Verification can take several days (3–5 business days), especially if follow-up documents or clarifications are required. The due diligence is stricter because Bybit must confirm both the entity's legitimacy and that of its owners.

Business accounts on Bybit have higher withdrawal limits, starting from a minimum daily limit ≤ 4M USDT. Just as for Individual account users, a higher VIP tier unlocks a higher limit, with a daily limit of ≤ 30M USDT for PRO 5 and PRO 6 users. However, certain services aren’t available for Business KYC users: 

Again, once a business KYC is completed, the account is locked in as a business account, and you cannot switch it to an Individual account.

How to complete Individual Identity Verification on Bybit

Step 1a: Access the Identity Verification page

Step 2: Proof of Identity (POI) — Required for Standard Verification

2. Select the country or region that issued your ID and the type of identity document (passport, ID card, driver’s license).

3. Upload a clear photo of your ID showing your full name and date of birth.

4. Complete your facial recognition using your laptop camera, or by scanning a QR code with your mobile device.

: If facial recognition fails repeatedly, wait 30 minutes and try again. Please contact Customer Support if issues persist.

Step 4: Proof of Address (POA) — Required for Advanced Verification

Enhanced Due Diligence (EDD) — Required for Pro Verification

Bybit’s Individual Identity Verification is divided into three levels — Standard, Advanced and Pro — each one progressively unlocking more features and higher withdrawal limits. The process begins with submitting your Proof of Identity and facial recognition (Standard), followed by Proof of Address (Advanced) and finally Enhanced Due Diligence for proof of income (Pro).

Completing these verification steps allows you to access Bybit’s full suite of services securely and in compliance with regulations. Remember to select your residence accurately, and submit clear, authentic documents to ensure smooth and timely approval.

For corporate users, separate Business KYC applies with additional requirements, so please refer to the 

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How to get started with KYC on Bybit

This article explores Bybit TradFi, the key benefits of using Bybit for stock CFD trading and how you can get started trading the top global stocks in a few easy steps.

In May 2025, Bybit launched an innovative feature: stock contracts for difference (CFDs) trading using USDT as collateral on its TradFi platform. This bridges the gap between traditional equities and crypto, enabling traders to access leading global stocks directly with their digital assets.

Bybit’s platform offers the flexibility of traditional markets while allowing traders to use USDT as collateral, streamlining the trading experience without requiring fiat conversions.

This article explores Bybit TradFi, the key benefits of using Bybit for stock CFD trading and how you can get started in a few easy steps.

Bybit TradFi is a unified platform that offers trading in stocks, gold, forex, commodities and indices, all accessible through the advanced MetaTrader 5 (MT5) interface. Designed for both beginners and experienced traders, it provides professional-grade tools within a single platform.

A standout feature is the use of USDT as collateral, allowing traders to access traditional markets, such as stocks and commodities, without converting cryptocurrency to fiat. This simplifies trading and makes portfolio management more seamless.

Bybit TradFi combines the best of traditional finance and Web3, providing a streamlined trading experience across stocks, gold, forex, commodities and indices via the MT5 platform.

Here’s why traders are choosing Bybit TradFi:

 in 2025, reflecting its growing trust and popularity among investors in both crypto and traditional markets.

Get started with Bybit TradFi in a few simple steps:

 its TradFi platform to include stock trading via CFDs, offering new opportunities for crypto-native traders.

 a curated selection of 78 top US stocks, including household names such as 

, Apple and NVIDIA, directly from the MT5 platform. 

Traders can open long or short positions with up to 5x leverage using USDT as collateral. This expansion connects digital assets with global stock trading.

What are contracts for difference (CFDs)?

 let traders speculate on asset prices without owning them. You can trade long or short and use leverage to control larger positions with a smaller deposit. While leverage can increase potential returns, it also increases the risk of losses.

Bybit TradFi makes it easy for crypto traders to access global stock markets without converting their digital assets into fiat currency. Here’s why it’s a smart choice for traders of all levels:

Bybit TradFi bridges the gap between digital and traditional markets, providing traders with a simple and flexible way to explore new opportunities using familiar assets.

What stocks can you trade on Bybit TradFi?

Bybit TradFi offers access to 78 of the most popular US stocks via CFDs, spanning key sectors such as technology, energy, healthcare, fintech and AI. These include prominent companies such as 

Bybit TradFi offers competitive and transparent fees for stock CFD trading:

Bybit TradFi offers access to a diverse range of global stocks, all directly available from the same platform you use for crypto trading.

Whether you’re expanding beyond crypto or exploring stock CFDs for the first time, Bybit TradFi offers a seamless, secure and efficient way to trade. Don’t miss this opportunity to 

 today and enjoy 50% off trading fees for a limited time!

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Wall Street meets Web3: Why trade stocks on Bybit

Bybit Learn

Investing

Curious about recent crypto-related Chapter 11 bankruptcy filings? Find out how it differs from traditional bankruptcies and the crypto implosion that ensued.

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What is a Chapter 11 bankruptcy, and how does it differ from others? Chapter 11 bankruptcy can protect a company, while leaving investors without repayment of debt owed. A crypto bankruptcy repayment plan can vary from other types, especially when debt is considered unsecured. In this article, we’ll define Chapter 11 bankruptcy and examine its effects on the average crypto investor.

Chapter 11 bankruptcy is commonly referred to as “reorganization” bankruptcy. Crypto investors need to know what a Chapter 11 bankruptcy is, and how it can affect them.

Chapter 11 and Chapter 7 bankruptcies might seem similar, but they’re very different. One bankruptcy involves liquidating assets, while the other one reorganizes debts. When a company is in dire financial straits, they can choose between several types of bankruptcies. Chapter 11 and Chapter 7 are the most common types. 

Chapter 7 is often referred to as a "liquidation" bankruptcy, as businesses move past the initial stage of reorganization and focus on selling off their assets. Usually, the bankruptcy court appoints a trustee to ensure all creditors receive payment in the correct order, which follows the rules of absolute property. For example, secured debt takes precedence over any unsecured debt. As a result, secured debts are the first to be paid. Once they’re paid off, the remaining cash and assets are pooled and distributed to creditors with unsecured debt.

On the other hand, Chapter 11 bankruptcy is intended to reorganize a business. It’s a complex form of bankruptcy. Not only are the filing fees expensive for Chapter 11, but the business must head to court several times during the reorganization process. Unlike Chapter 7, Chapter 11 bankruptcy allows the company to reorganize debts, emerging as a healthier business.

Companies that want to file for Chapter 11 bankruptcy must request a bankruptcy court hearing. During this process, the debtor remains in business while trying to stabilize their company. These stabilization efforts may include selling off assets, cutting expenses and attempting to negotiate with debtors. All of these actions remain under the supervision of the court.

Debt is not absolved in a Chapter 11 bankruptcy, meaning the restructuring only changes the debt terms. The debtor must pay back the creditors with future earnings. When a company successfully emerges from Chapter 11, it operates with a newly structured debt. Unfortunately, if Chapter 11 is unsuccessful, the business will file for a Chapter 7 bankruptcy, and the company may then liquidate its assets to pay off debts.

Let’s look at the differences between a Chapter 11 and Chapter 13 bankruptcy filing.

There are fundamental differences between Chapter 11 and Chapter 13 bankruptcies. Filing for Chapter 13 must implement a plan to repay the debts within three to five years. In most cases, the debtor may keep some assets. Chapter 13 bankruptcy filers often pay a monthly amount to a trustee, who then pays the creditors.

Chapter 13 bankruptcies require a trustee. However, Chapter 11 bankruptcies make this optional, and the trustee isn’t needed in most cases. The trustee reviews the bankruptcy proposal, makes recommendations to the court and distributes creditor payments. The Chapter 11 process can often be drawn out, taking several years to complete. Chapter 13 bankruptcy has a shorter approval process than Chapter 11. However, all disposable income must be made available to the trustee for distribution to the creditors during the repayment process.

What Happens During a Chapter 11 Bankruptcy Filing?

All Chapter 11 bankruptcies start with a petition filed in court. To qualify for Chapter 11, the debtor must not have any past bankruptcies deemed "non-compliant" by the courts. With the filing, the debtor must submit an income and expenditure schedule. The business must also list assets, liabilities, unexpired leases and executory (still to be fulfilled) contracts. Once the debtor files the petition, the company assumes the role of "debtor in possession," meaning that it retains control of operations and assets during the reorganization process.

The petition includes the debtor’s following information:

When the court receives the petition, it charges a $1,167 filing fee and an administrative fee of $500. The fee must be paid in whole or as installments to the court.

The company must also file a plan of reorganization and disclosure statement with the court. The reorganization plan will contain the classification of debt claims and the treatment of each one. If the creditor has an impaired claim, the creditors can vote to accept or reject the plan of reorganization through balloting. A creditor's claim is considered impaired when the original terms of the debt change in a negative way, such as lengthening the payout period or reducing the interest rate.

A disclosure statement contains details about the debtor's liabilities, assets and business affairs. This information often allows the court to make informed decisions about the plan of reorganization. After the court has reviewed the disclosure statement and tallied the creditors' votes, it conducts a hearing on confirming or denying the plan of reorganization.

Since the Chapter 11 bankruptcy puts the debtor "in possession," the debtor is responsible for handling several functions, such as accounting for assets, filing reports with the court and examining any objections to claims. With the court's approval, the debtor in possession may employ professionals to help with these duties. These can include auctioneers, accountants, attorneys and appraisers.

Sometimes, a trustee may be required to monitor the debtor's progress in these reporting requirements. If the debtor in possession fails to comply with specific reporting requirements, the trustee may file a motion to dismiss Chapter 11, or have the case assigned to another bankruptcy chapter.

Some businesses may ask, "What is Chapter 11 bankruptcy, and how can it help with current judgments?" During this time, an automatic stay order goes into effect, suspending all foreclosures, collection activities, judgments and repossessions that occurred before the petition. Once the petition is filed, the stay against the creditor(s) immediately goes into effect. As a result, the debtor will have a chance to hold negotiations to resolve any financial distress. In some cases, secured creditors may apply for relief from the automatic stay to foreclose on assets and receive sale proceeds to satisfy their debts.

Once the Chapter 11 bankruptcy is filed, the debtor must have a plan within 120 days. Occasionally, the court can grant another 180 days to receive a confirmation for the plan. The plan's creditor claims are designated into classes for treatment in the reorganization plan. Additionally, the plan lists creditors in order of priority for repayment, with secured debts at the top of the list.

In a Chapter 11 bankruptcy, an entire class of creditors must approve the reorganization plan. At least two-thirds of creditors, or one-half of the allowed claimants, must accept the reorganization plan. Also, it needs to be approved by one class of creditors who have impaired claims. After that, the reorganization plan is considered accepted by the majority of creditors.

Even if a class of creditors objects, the plan may move on, as long as specific requirements are met. The reorganization plan must be equitable and must not discriminate against a particular class of creditors. If there are no objections, the court will confirm the plan, which must comply with the rules outlined for Chapter 11 bankruptcy. After a ruling in court, the plan becomes binding and defines how the debts will be treated.

However, the court may decide not to accept the Chapter 11 bankruptcy reorganization plan. In this situation, the court can either convert the case to a Chapter 7 bankruptcy filing or dismiss it. A rejection of the plan will return the business to the same status as before the filing. With that, creditors may opt for a non-bankruptcy filing to protect their interests.

We’ve described what a Chapter 11 bankruptcy is — but what does it mean for crypto firms? Let’s find out, as some companies have filed for

 or crypto-related Chapter 11 bankruptcies to protect their assets.

What Happens to Existing Investors If a Crypto Firm Files for Bankruptcy?

When a crypto firm files for a crypto-related or Bitcoin Chapter 11 bankruptcy, their stocks and bonds continue to trade on the exchange, allowing them to proceed with normal business operations. Any firm facing a crypto bankruptcy must report its changes to the SEC. With the announcement of a Chapter 11 bankruptcy protection, there’s a risk that shares could lose their value. The announcement of a Chapter 11 bankruptcy may cause a company’s stocks and bonds to plummet, despite the reorganization plan put in place to satisfy creditors. 

Unfortunately, investors are the least protected entity in a crypto bankruptcy. Custodially held crypto assets are considered the property of the bankrupted firm. In a crypto bankruptcy, the asset may be subject to bankruptcy proceedings. In other words, customers could be treated as unsecured creditors. As such, these investors have little or no resources to recover their cryptocurrency or the equivalent cash balance in the event the firm goes bankrupt.

Chain of Events That Led to the Recent Crypto Implosion

News of any crypto bankruptcy often shakes investors. While cryptocurrencies have hit all-time highs over the past couple of years, there’s been a downturn of approximately 75% over the last few months. Crypto Chapter 11 filings have created fear in the market.

Terra Ecosystem Experiences Unparalleled Growth

At one time, Terra (LUNA) was the most successful blockchain platform. Its native token,

, benefited from the growth of the stablecoin known as

 ecosystem started to gain mainstream popularity with many investors. In 2021, LUNA traded at an all-time high of $199. Additionally, the entire Terra DeFi ecosystem was valued at $45 billion.

With Terra’s unprecedented gains, a crypto bankruptcy wasn’t even on the radar for most investors. Many believed Terra would never head toward a crypto bankruptcy with its unprecedented gains. However, there were other indicators that the crypto market was headed for turbulence.

While Terra experienced unparalleled growth, there were signs of cracks in the company. Few people knew that these signs would cause a shift in the entire crypto market.

 closed down the company on May 4, 2022. This action took place days before the collapse of UST and LUNA. After a general shareholder meeting on April 30, 2022, Terraform Labs Korea dissolved its branches in Seoul and Busan. Do Kwon was listed as the liquidator in the crypto bankruptcy filings. After that, the platform began to face more challenges in the market.

The TerraUSD stablecoin, UST, briefly lost its peg to the U.S. dollar, falling to $0.987 on May 8, 2022. UST was once known as the largest

, and some investors considered it the backbone of the crypto economy. Unfortunately, UST lost its peg after the team embarked on a bid to build its

 and Bitcoin reserves. Depegging often occurred when investors made significant withdrawals from

, a lending market that offers high yields to users who deposit UST. Large quantities of UST were also withdrawn from liquidity pools, including withdrawals made by Terraform Lab’s creators.

Panic Withdrawals Cause LUNA and UST to Plummet in Value

After these events, LUNA and UST prices rapidly lost between 70% to 99% of their value. Terra had focused on building its reputation and fame in the stablecoin space, but its price plummeted after the depegging. Unlike most other stablecoins, which are backed by

, UST was backed by an algorithm that maintained its price. To support UST, LUNA had to be minted. As panic set in, investors and traders quickly sold their UST for other currencies, creating a stunning price fall for both UST and LUNA.

Crypto Entities State ‘Extreme Market Conditions’ as Main Reason to Halt Withdrawals

The debacle with LUNA and UST caused panic in the market. In some cases, these extreme market conditions put a halt to withdrawals. When news of the LUNA and UST fiasco hit, the company paused all withdrawals to avoid causing more pain to the fragile market.

 has been one of the most prominent players in the crypto lending space, with over $12 billion in assets and $8 billion in assets lent to clients. However, the move raised concerns about its solvency as the value of its assets fell by half in less than six months. Celsius is the biggest holder of CEL, which has seen 97% of its value erased. Many wondered if Celsius was going to be the next firm to file a crypto bankruptcy, which they eventually did on July 13, 2022.

Major Firms Are Caught Off Guard With News Leaks of Exposure to Terra Ecosystem 

The implosion of the Terra ecosystem caught many of the major crypto platforms off guard, leaving them to wonder about the possibility of more Chapter 11 bankruptcy filings for crypto firms. Only months earlier, UST had been the leading stablecoin in the market. The situation with LUNA and UST sent the crypto market into a tailspin. Like Celsius, many significant firms sought ways to reduce the pain in the crypto market. While these stops may have helped stabilize the market in the short term, they’ve also led to uncertainty and the fear of another crypto bankruptcy announcement.

Hedge Funds, Brokerages and Lending Platforms Face Insolvency Risks

The Terra ecosystem’s weaknesses have highlighted other problems in the crypto marketplace, leading to fear of more Chapter 11 filings. While many crypto lending platforms, hedge funds and brokerages had looked like can't-miss investment opportunities, the past two months have shown that some of them are at risk of insolvency. When these entities file for crypto bankruptcy, there’s hardly any protection for investors, further compounding investors’ fears.

Major Crypto Firms That Have Filed for Chapter 11 Bankruptcy Protection

Along with the woes of the Terra ecosystem, other major firms have filed for their own crypto bankruptcies. Some of these firms include:

Three Arrows Capital (3AC) has backed many projects, including holding approximately $200 million in LUNA coins. With the broad decline in the market, LUNA's prices fell. As a result, 3AC failed to meet its margin call and 

 from Voyager Digital. While Three Arrows Capital didn’t officially file for a crypto bankruptcy, its liquidation was ordered by the court in the British Virgin Islands on June 27, 2022. 

The actions of Three Arrows Capital may have been the cause of

's own crypto bankruptcy. Voyager Digital needed to protect its assets after Three Arrows Capital 

. The service suspended all withdrawals and trades on the platform days before the crypto bankruptcy filing. At the time of its Chapter 11 bankruptcy filing on July 6, 2022, the company held between $1 billion and $10 billion in assets and liabilities.

On July 13, 2022, the Celsius network filed for Chapter 11 bankruptcy. Problems for the company have resulted from the crypto bankruptcy concerns of Three Arrows Capital. The value of CEL, the currency issued by Celsius Network, has significantly plummeted, leading to more problems for Celsius. The fintech platform had claimed it held $167 million in cash, but Chapter 11 bankruptcy court documents indicate a $1.2 billion shortfall.

On November 6, 2022, FTX, one of the largest crypto exchanges, was rumored to have artificially inflated its balance sheet due to overleveraging on its token,

 This created fear that FTX was facing liquidity issues, causing a bank run by its users. This eventually led to the exchange’s pausing of withdrawals on November 8, 2022. On November 11, FTX — together with its trading company, Alameda Research — filed for Chapter 11 bankruptcy, immediately facing almost $8.8 billion in total liabilities. The new FTX CEO, John J. Ray III, has taken command and will be overseeing the bankruptcy process. Ray previously oversaw the bankruptcy of 

Some other firms had exposure to Three Arrows Capital, while one firm had exposure to FTX and Alameda Research. This means they may face a crypto Chapter 11 filing and are at risk of insolvency. A few examples of these firms on the edge of crypto bankruptcy include the following.

Babel Finance, a crypto financial service provider, has temporarily suspended the redemption and withdrawals of crypto assets after the lender failed to pay its clients. Many investors wonder if the company can remain solvent, or must face a crypto bankruptcy.

BitMEX, a crypto trading platform, was on the verge of releasing its token, the BMEX. However, with unfavorable market conditions, the company has decided to postpone the release.

After a counterparty failed to meet a $47 million margin call, CoinFLEX, a crypto platform for earning and trading crypto, halted all withdrawals on June 23, 2022. The company has reopened, but is only allowing investors to withdraw 10% of funds; the remaining funds are listed as locked. Some experts in the crypto industry have wondered whether CoinFLEX is keeping these funds for a potential Chapter 11 bankruptcy filing.

With its exposure to Three Arrows Capital, Finblox, a crypto digital asset platform, imposed a $1,500 withdrawal limit on customers. However, the company plans to raise the limit to $50,000 in the coming weeks for verified users.

According to reports, Genesis Global Trading, a noncustodial crypto OTC market-maker, experienced hundreds of millions of dollars in losses due to its exposure to Three Arrows Capital. Fortunately, Digital Currency Group, its parent company, has helped shield Genesis from some of these losses, preventing a crypto bankruptcy.

, was exposed to counterparty risks and is potentially facing insolvency. It supposedly received financial assistance from FTX and has also paused customer withdrawals.

. It’s also in the process of seeking financial help from other organizations, such as Binance.

Crypto bankruptcy is not uncommon in these uncertain times. Platforms, hedge funds and firms teetering on the brink of insolvency can make any investor nervous. While most investors know what a Chapter 11 bankruptcy is, they may not understand what a crypto bankruptcy can do to their assets. Sometimes, investors may be deemed unsecured debtors, with no means to reclaim any of their digital assets. While understanding what a Chapter 11 bankruptcy is may not lead to recovery of everyone’s funds, it’s important for any investor seeking knowledge and empowerment to become better informed in the days ahead.

Crypto Chapter 11 Bankruptcies in 2022: What You Need to Know

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Crypto Chapter 11 Bankruptcies in 2022: What You Need to Know

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Compete for 2,500 USDT Every Week

Grab Up to 5,000 USDT in Rewards