2023 Sees Record Number of Cryptocurrency Bankruptcies


Exploring the crypto bankruptcies of 2023, here are the details of the collapse of major exchanges and the layoffs of key players in the industry.

It’s evident that 2022 was an exceedingly difficult year for crypto, with the downfall of Terraform Labs (LUNA and UST) and FTX leading to bankruptcies, layoffs and shutdowns across the market.

2023 saw the fallout from the previous year, with the bankruptcy proceedings of Celsius, Voyager, Three Arrows Capital (3AC), BlockFi, and FTX in different stages. Here are the most notable crypto bankruptcies and exchange failures of the year.

Notable crypto bankruptcies


At the start of the year, Genesis, a crypto lending subsidiary of Digital Currency Group, declared bankruptcy. Challenges began in mid-2022 due to a substantial loan loss to Three Arrows Capital, another entity that filed for bankruptcy in July 2022.

The collapse of FTX and Alameda Research in November 2022 had a domino effect on Genesis, with assets locked on FTX and a lending relationship with Alameda. This led to the company halting redemptions at its lending unit and then filing for Chapter 11 bankruptcy in January 2023.

Core Scientific

Previously a major publicly traded crypto mining company in the United States, Core Scientific filed for Chapter 11 bankruptcy in December 2022. Declining Bitcoin (BTC) prices, escalating energy costs, and an unpaid debt of $7 million from Celsius Network were cited as primary reasons.

However, the company managed to negotiate a ray of hope, with an in-principle agreement with shareholders involving the distribution of convertible notes and stock, and plans for a potential relisting on the NASDAQ exchange by mid-January 2024.

Babel Finance

Hong Kong-based crypto lender Babel Finance required extended creditor protection in Q2 2023 due to suspensions of client withdrawals in April and substantial losses incurred through proprietary trading with customer funds.

According to its restructuring proposal deck, Babel Finance lost over $280 million in Bitcoin and Ether (ETH), amounting to around 8,000 BTC and 56,000 ETH from liquidation events triggered by a significant downturn in the market in June.

Crypto exchange bankruptcies (2023)

KuCoin announced its exit from the New York market, citing regulatory challenges, and Binance entered into a historic settlement with the DOJ over criminal charges. Here are the most notable complete shutdowns.

Bittrex Global

Just months following the shutdown of its U.S. arm, Bittrex Global, a well-regarded crypto exchange, announced the cessation of its operations in early December. Customers were urged to complete necessary transactions by early December, after which only withdrawals would remain available.


Netherlands-based cryptocurrency exchange Txbit also announced its shutdown in 2023. Rising compliance costs and constant pressure on product margins were key factors that led to this decision to cease operations.


U.S.-based crypto exchange Bitfront, backed by Japanese social media giant Line Corp, announced its decision to cease operations early in 2023. The exchange suspended new sign-ups and credit card payments as a precursor to its complete shutdown.

Major crypto layoffs in 2023


Blockchain.com, a crypto brokerage, faced significant downsizing in 2023, with a 28% reduction in its workforce, equating to approximately 110 employees. This followed a previous round of layoffs in the summer and the closure of its Argentina offices.


Coinbase, the largest U.S. crypto exchange, undertook a significant restructuring in 2023, which included laying off around 20% of its staff, amounting to about 950 employees. This was part of a broader cost-cutting strategy implemented by the exchange.


Crypto.com experienced significant layoffs in 2023, cutting a fifth of its global workforce. This was the second round of layoffs within six months.

Digital Currency Group

The Digital Currency Group (DCG) closed its wealth-management division, HQ, as part of a strategic shift. DCG also explored options for CoinDesk, including a potential sale, following multiple unsolicited offers exceeding $200 million.


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