Over the span of two weeks in July 2022, two of the largest retail-facing cryptocurrency platforms, Celsius and Voyager, filed for chapter 11 bankruptcy protection. Both cases were precipitated, at least in part, by a “run on the bank” in which retail customers withdrew substantial amounts of cryptocurrency from each platform. Recent reports suggest that, in the weeks and months leading up to the bankruptcy, Celsius insiders also pulled tens of millions of dollars’ worth of their own crypto assets that had been deposited on the platform.
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