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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

    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
  • Major Scams and Bankruptcies

    PlusToken 

    The PlusToken Ponzi scheme is infamous for being one of the most significant fraudulent activities in the history of cryptocurrency. With a loss amounting to billions of dollars, it has not only affected individual investors but also played a role in the destabilization of the cryptocurrency market for a certain period. In this article, we …
    PlusToken
  • Major Scams and Bankruptcies

    Bitconnect 

    The Bitconnect Ponzi scheme is a watershed moment in the cryptocurrency realm, serving as a cautionary tale for investors attracted to the alluring prospects of quick wealth. The scam, which unfolded between 2016 and 2018, resulted in the loss of millions of dollars, leaving countless investors financially ruined. In this article, we unpack the mechanics …
    Bitconnect
  • Major Scams and Bankruptcies

    GainBitcoin 

    The GainBitcoin Ponzi scheme is a significant episode in the chronicles of cryptocurrency-related frauds, highlighting the potential risks associated with digital currencies. Operating under the guise of a legitimate Bitcoin investment opportunity, this fraudulent scheme effectively duped thousands of unsuspecting investors, ultimately leading to financial ruin for many. Background Initiated in 2016, GainBitcoin was presented …
    GainBitcoin
  • Major Scams and Bankruptcies

    Mt. Gox 

    Mt. Gox, once the largest Bitcoin exchange in the world, became a cautionary tale in the history of cryptocurrencies. Handling over 70% of all Bitcoin transactions worldwide by early 2014, its abrupt cessation of operations revealed a dark underbelly of the crypto world and underscored the significance of security and regulation in the realm of …
    Mt. Gox
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