When the cryptocurrency lending platform Celsius froze user accounts in the midst of a plunge in valuations, it sent ripples across the industry and raised questions about what happens to user assets if a crypto platform files for bankruptcy. WSJ’s Vicky Ge Huang explains. Photo illustration: Jordan Kranse
Turmoil in the digital-assets ecosystem has grown in recent weeks, with blowing holes in balance sheets and pushing firms near bankruptcy.
After a pair of cryptocurrencies crashed, wiping out billions of dollars in value in May, a British Virgin Islands court this past week that had survived several crypto downturns to liquidate. Another platform that counts the hedge fund as an investor while evaluating how the hedge fund’s woes would affect its liquidity.