Bankruptcies & Financial Collapses

Category: Bankruptcies

March 12, 2023

USDC Stablecoin Issuer Circle Provided Statement Of Impact Of SBV Collapse!

The Silicon Valley Bank's (SVB) sudden death on Friday triggered shockwaves in the already traumatized crypto scene. One of the victims of the SVB collapse was the USDC stablecoin, which is 100% collateralized with cash and US Treasuries. $3.3 billion of USDC’s cash reserves had been deposited with SVB at the time of the collapse. The USDC price dived but recovered quickly. USDC issuer Circle said they hope the regulators will find a solution that protects customers’ assets 100%.

March 12, 2023

Contagion Fear: Silicon Valley Bank Collapse May Trigger Global Startup Wipe-Out Tsunami!

According to a Reuters report, the U.S. financial sector and the startup scene are shaken by the sudden death of the Californian Silicon Valley Bank (SBV). The contagion fear reaches global dimensions. Financial industry executives, investors, and founders are concerned that the SBV collapse could result in a domino effect on other regional banks and startups. The regulators are urged to intervene to avoid a massive wave of startup wipe-out.

March 11, 2023

Death Spiral! Collapse Of Silicon Valley Bank Will Trigger More Startup And Crypto Bankruptcies!

The death spiral in the fintech and crypto sector continues to spin. It started in 2022 with the collapse of the crypto sector last year, which also dragged down the FinTech sector. On 10 March, Californian Silicon Valley Bank (SVB) was taken over by the regulator due to a bank run resulting in lethal liquidity issues. The shutdown of the bank, systemically critical to the U.S. startup and crypto scene, will most certainly trigger more bankruptcies among their clients.

March 11, 2023

Crashed! After Bankrun, U.S. Regulator Shut Down Control Of Silicon Valley Bank!

Yesterday, FinTelegram reported on the problems of SVB Financial Group, the owners of Silicon Valley Bank, a key player in the tech and venture capital community. SVB shares had collapsed against the backdrop of losses and acute capital needs at its bank. SVB faced a bankrun and ran out of liquidity. On Friday, The U.S. FDIC took control of the company. Many startups will probably lose their funds.

March 9, 2023

No Surprise: Californian Crypto Bank Silvergate Closes Down!

Some industry experts expected a bankruptcy filing! Instead, the California-based Silvergate Bank announced its intent to wind down operations and voluntarily liquidate the bank in an orderly manner. In the past few years, Silvergate became the largest crypto bank in the US, attracting as much as $14 billion in customer deposits and reaching a stock price of more than $200 in late 2021. All deposits will be fully repaid, according to a liquidation plan.

March 8, 2023

Bankruptcy Judge Approves Binance.US $1.3 Billion Bid For Voyager Assets!

Despite SEC's vague objection, Binance.US cleared a major hurdle in its effort to acquire the assets of bankrupt crypto lender Voyager Digital in a deal worth $1.3 billion. U.S. Bankruptcy Judge Michael Wiles approved Voyager's restructuring plan, built around the Binance.US acquisition. Binance.US has agreed to pay $20 million in cash to Voyager and to take on crypto assets deposited by Voyager customers.

March 5, 2023

Breaking: Former Wirecard Shortseller Was Allegedly Threatened By Law Firms And Kroll!

Matthew Earl is a founder and fund manager at ShadowFall (www.shadowfall.com), a hedge fund focusing on short-selling. The collapsed Wirecard used to be one of the short-seller's targets, The Guardian reports. Allegedly, he was intimidated by private investigations company Kroll on behalf of their client Wirecard. According to a legal claim brought by Earl, Wirecard's law firm, Jones Day, carried out a “campaign of unlawful harassment” together with Kroll to intimidate him and his family.

March 3, 2023

Wirecard Trial: Markus Braun Fighting To Prove The Existence Of 3rd-Party Acquirer Network!

In Munich, Markus Braun, the former CEO of collapsed German fintech unicorn Wirecard, is fighting to prove his innocence to the court. Yesterday Thursday, he used a PowerPoint presentation to prove that the controversial third-party acquiring business in Asia existed. The prosecutors' crown witness Oliver Bellenhaus denied the existence of this business. The judge was skeptical; Braun could not answer important questions conclusively. Here is the FinTelegram update!

March 3, 2023

FTX Bankruptcy: $8.9 Billion Worth Of Customer Funds Are Missing!

The crypto exchange FTX was the latest of the big crypto bankruptcies in 2022 but certainly the most prominent one. In the last few weeks, the U.S. DoJ, CFTC, and SEC regulators filed criminal charges and fraud complaints against the FTX top executives around Sam Bankman-Fried, Nishad Singh, and Gary Wang. A recent report from the Wall Street Journal pointed out that $8.9 billion worth of customer funds have been unaccounted for and therefore missing.

March 2, 2023

Disgraced Regulators, Embarrassed CFTC Commissioners, And Their FTX Worship!

FTX founder Sam Bankman-Fried (SBF) was the darling of U.S. politicians and regulators until just before the crypto scheme collapsed. FTX was seen as the U.S. answer to the "Chinese" threat posed by Binance. With the criminal and regulatory charges, some regulators are embarrassed, like the CFTC Commissioner Caroline D. Pham or the former CFTC Commissioner Mark Wetjen. CFTC recently filed a fraud lawsuit against FTX and those responsible. Pham took to Twitter to comment.

February 15, 2023

Follow The Money: The Luxury Lifestyle Of Executives Of Collapsed iPayTotal!

Indian payment veteran Ruchi Rathor's high-risk payment processor scheme iPayTotal collapsed in late 2020. Initially, iPayTotal Ltd was to be quietly dissolved and disappear. But then creditors came forward, and the court opened bankruptcy on the company. The Joint Liquidators report claims in the millions. Senthooran Kuganathan, a/k/a Sen Kugan, was one of the executives of the scheme and cashed a lot of money. He bought himself an expensive house and a Porsche!

February 8, 2023

Request 4 Information: Chapter 7 Bankruptcy Of Payvision Partner T1 Payments!

Donald Kasdon's U.S. high-risk payment processor T1 Payments has received several lawsuits in recent years from former merchants claiming that T1 Payments failed to pay them their money. Apparently, Donald Kasdon is trying to escape these many lawsuits via a Chapter 7 Bankruptcy deposition. T1 Payments was the U.S. partner of ING subsidiary Payvision, which is also desperately trying to settle lawsuits from merchants in the U.S. We would like to know more.

The Unraveling of Rabidi and the Rise of the SoftSwiss Network: Our Updated Forensic Report

A few months ago, FinTelegram released a first forensic report on the bankruptcy of Rabidi N.V., a Curacao-registered online casino operator with hundreds of millions in revenues — and no traceable assets by the time of its collapse in May 2024. That report already raised serious questions about the opaque structures behind Rabidi’s operations and its successor, Liernin Enterprises Ltd.

DeFi Decoded: Smart Contracts – The Code Behind the DeFi Revolution

Smart contracts are the invisible architects of decentralized finance. These self-executing lines of code run everything from token swaps to lending platforms without middlemen. But while they offer autonomy, they also introduce new risks—bugs, exploits, and irreversible mistakes. In this fourth installment of our FinTelegram DeFi Series, we explain what smart contracts are.

CFTC

Despite New Crypto Friendlyness: No Settlement Between U.S. CFTC And KuCoin?

A planned settlement between the U.S.CFTC and crypto exchange KuCoin is now in limbo due to a reported policy shift within the CFTC. This change is attributed to the Trump administration’s new approach, which deprioritizes enforcement actions against crypto companies. As a result, a CFTC attorney said that it is "unlikely that such authorization will be granted in the near term" regarding the settlement approval.

SEC’s New Era: Paul Atkins Sworn In—Will Crypto Finally Get the Regulatory Clarity It Deserves?

The U.S. Securities and Exchange Commission (SEC) has entered a new chapter with the swearing-in of Paul S. Atkins as its 34th Chairman, a move widely anticipated to mark a dramatic pivot in how the agency approaches crypto and DeFi regulation. For years, the financial industry—especially the burgeoning digital asset sector—has bristled under the SEC’s “Regulation by Enforcement” strategy.

Crypto Mogul Changpeng Zhao – Fallen, Rich, and Rising Again?

As spring 2025 blooms and Easter’s themes of rebirth fill the air, Changpeng Zhao emerges as one of the most controversial figures of startup mythology: a man who fell spectacularly, paid a price—then rose again, wealthier and louder than ever. Once the almighty architect of Binance, CZ now resides in Dubai with a net worth that Forbes estimates at $63 billion.