How quickly does the “crisis” end?

Digital Asset News

Centralized crypto lender Voyager Digital Holdings has rejected an offer from FTX and its investment arm Alameda Ventures. In the process, Alameda offered to buy out the digital assets. Voyager’s reasoning was that the actions were “not value-maximizing” and would potentially “harm customers.” In a rejection letter filed with the court on Sunday as part of the ongoing bankruptcy proceedings, Voyager’s lawyers rejected the offer made by FTX, FTX US and Alameda on Friday to buy out all of Voyager’s assets and outstanding loans (with the exception of the defaulted loan to Three Arrows Capital).
Voyager filed for bankruptcy in the Southern District of New York on July 5 due to insolvency. It was triggered by crypto hedge fund 3AC, which failed to repay a $650 million loan.
On Friday, the three companies, led by FTX CEO Sam Bankman-Fried Voyager-offered a deal that would see Alameda take over all of Voyager’s assets and use FTX or FTX US to sell and distribute them proportionately to users affected by the bankruptcy.

Sam Bankman-Fried, the founder and CEO of the leading crypto trading platform FTX, is convinced that the ongoing crisis in the crypto industry has gradually been sat out. The successful young entrepreneur concludes this from the fact that he now no longer receives “heaps of calls” from crypto companies that have run into trouble. If the global economic situation should also improve again, the turnaround on the crypto market could be “incredibly fast”.
Bankman-Fried further points out that the overall economic situation has a major impact on the crypto market, which is why the industry’s current problems are not entirely homegrown. In addition, clear regulation is urgently needed in order to be able to provide for more confidence among private investors and institutional investors.
For this reason, the FTX boss is largely positive about the draft laws that have recently been introduced in the USA:
“I am pleased with the drafts we have seen so far. […] I think they will bring us a lot more.”

The two founders of Three Arrows Capital admit that their massive investment in Terra (LUNA) was a mistake. The founders of the massively troubled crypto hedge fund Three Arrows Capital (3AC), which even filed for bankruptcy in the first week of July, are speaking out for the first time after five weeks of radio silence.
In an interview with Bloomberg, the two founders, Su Zhu and Kyle Davies, admit that overconfidence resulting from a bull market lasting several years has led to the current failure of their company. The previous peak phase, in which lending platforms grew rapidly thanks to money from lenders such as 3AC, had caused a series of bad decisions that were actually avoidable. In this context, Zhu also discloses close ties to Do Kwon, founder of the dramatically failed blockchain project Terra (LUNA), through which Three Arrows allowed itself to be blinded by the project’s lure and ignored warning signs. As a result, the crypto hedge fund ended up investing a whopping $500 million in Terra:
“We wish we could have seen this coming, that the whole thing was fragile in some ways, and grew way too fast in too short a time. After the collapse [of Terra], we were still able to continue our business as normal, but then when Bitcoin slid from $30,000 to $20,000, we really bled. That was kind of the nail in the coffin for us then.”
In conclusion, it must be stated here that unprofessional actions led to the bankruptcy.