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Major Scams and Bankruptcies Major Scams and Bankruptcies

This category contains a great deal of information about major financial scams and bankruptcies that turned out to be due to fraud. It includes detailed accounts of the Madoff Ponzi scheme, the failure of various Crypto businesses such as Celsius, FTX and Alameda Research.

  • Major Scams and Bankruptcies

    Signature Bank 

    Signature Bank, a New York-based financial institution, was founded on May 1, 2001, by Joseph J. DePaolo, Scott A. Shay, and John Tamberlane. The bank primarily served privately owned businesses, their owners, and senior managers, offering a range of services including but not limited to commercial lending, real estate financing, private banking, asset management, and …
    Signature Bank
  • Major Scams and Bankruptcies

    Silvergate Bank 

    Silvergate Bank, founded in 1988 by Derek Eisele, and headquartered in California, initially operated as a traditional commercial bank. However, in 2013, the bank shifted its focus to serving cryptocurrency clients, marking a pivotal moment in its history.  The bank went public with an IPO on November 7, 2019, trading on the NYSE (ticker: SI). …
    Silvergate Bank
  • Major Scams and Bankruptcies

    First Republic Bank 

    First Republic Bank, founded in 1985, is a regional commercial bank based in San Francisco, California. It provides a range of financial services, including private banking, business banking, real estate lending, and wealth management solutions.  Its offerings encompass various accounts like checking, money market, and savings accounts, as well as lending solutions for home, commercial, …
    First Republic Bank
  • Major Scams and Bankruptcies

    Silicon Valley Bank 

    Silicon Valley Bank, (now a division of First-Citizens Bank & Trust Company), was a prominent financial institution that became one of the largest commercial banks in the U.S., particularly known for serving startups and venture-backed firms. However, it faced significant challenges leading to its closure in March 2023, marking the end of its rich 40-year …
    Silicon Valley Bank
  • Major Scams and Bankruptcies

    BlockFi 

    BlockFi, a promising digital asset lender founded in 2017, saw an unceremonious end with its bankruptcy filing in November 2022. The New Jersey-based company, once valued at $3 billion, garnered attention for its innovative crypto services but ultimately succumbed to a series of financial and regulatory challenges. A Promising Start Initiated by Zac Prince and …
    BlockFi
  • Major Scams and Bankruptcies

    FTX & Alameda Research 

    FTX and Alameda Research, two prominent names in the cryptocurrency sector, recently declared bankruptcy amidst a storm of controversy and financial mismanagement. In this article, we will walk you through their rise and eventual fall, highlighting the pivotal moments that led to their demise and the implications for the wider cryptocurrency industry. Founding and Early …
    FTX & Alameda Research
  • Major Scams and Bankruptcies

    Voyager Digital 

    Voyager Digital, once a thriving cryptocurrency brokerage company, underwent a significant financial downfall, ultimately leading to its bankruptcy. In this article, we explore the chain of events that brought the enterprise to its knees, critically analyzing the decisions and circumstances that drove it to insolvency. History and Background Voyager Digital was established as a cryptocurrency …
    Voyager Digital
  • Major Scams and Bankruptcies

    Three Arrows Capital 

    Three Arrows Capital (TAC), also known as 3AC, was a noteworthy Singapore-based cryptocurrency hedge fund that experienced a monumental collapse in June 2022. The British Virgin Islands court ordered its liquidation after the company faced billions in losses and creditors’ claims. Its founders, Kyle Davies and Su Zhu, set up the fund in 2012. The …
    Three Arrows Capital
  • Major Scams and Bankruptcies

    TerraUSD & Luna 

    In May 2022, the cryptocurrency world witnessed a significant debacle when TerraUSD (UST) and Luna collapsed, erasing nearly $45 billion in market capitalization within a week. Terra, the brainchild of Terraform Labs, co-founded by Do Kwon and Daniel Shin in 2018, was known for its eponymous stablecoin and Luna reserve asset cryptocurrency. Background Terra aimed …
    TerraUSD & Luna
  • Major Scams and Bankruptcies

    Celsius Network 

    Celsius Network LLC, once a thriving cryptocurrency lending company based in Hoboken, New Jersey, declared bankruptcy under Chapter 11 in July 2022. The financial collapse left the crypto community in shock, prompting an analysis of the contributing factors leading to its failure. Financial Model and Operations Celsius offered a platform where users could earn interest …
    Celsius Network