Today in Crypto: Three Arrows Capital Files for Bankruptcy; Celsius Hits Three Week Mark of Closed Withdrawals

Babel Finance, a cryptocurrency firm that is bending under the weight of significant debt, is looking to hire U.S. restructuring specialist firm Houlihan Lokey, CoinDesk reported Friday (July 1), citing anonymous sources.

CoinDesk stated that neither Babel Finance nor Houlihan Lokey responded to requests for comment. On June 20, several days after halting withdrawals and redemptions, Babel stated on its website that it had “reached preliminary agreements on the repayment of some debts.”

See also: Crypto Lender Babel Announces Debt Relief

Meanwhile, Three Arrows Capital, which was ordered last week to liquidate by a court in the British Virgin Islands, has taken steps in the United States to coordinate the disposition of its assets and maximize their value.

The company filed on July 1 for Chapter 15 bankruptcy in U.S. Bankruptcy Court for the Southern District of New York. Chapter 15 proceedings generally allow for cooperation between trustees handling bankruptcies in foreign jurisdictions and courts in the United States.

Read more: Court Orders Liquidation of Three Arrows Crypto Fund

Three Arrows was joined in the filing by two trustees appointed in the British Virgin Island to manage liquidation of Three Arrows.

Furthermore, The Wall Street Journal reported Sunday (July 3) that customers who were caught when Celsius stopped allowing withdrawals or redemptions in mid-June are beginning to lose hope they’ll ever see their money.

Three weeks after the firm stopped withdrawals, the Journal reported that customers are learning the hard way that Celsius was not a traditional bank.

In other news, no matter how many times Tether’s backers say the stablecoin is backed up well by assets, investors are still acting as if they’re nervous, Bloomberg reported Sunday.

The report noted that Tether’s reserves are dollars and dollar-equivalent assets and allow the company to maintain its 1:1 peg to the dollar. The market value of Tether fell by roughly $600 million this week, according to CoinGecko data.

Finally, the recent resignation of Argentina’s finance minister has prompted his countrymen to seek financial refuge in crypto, Bloomberg reported Saturday (July 2).

The crypto market is the only one that operates on Saturdays, according to the report. Argentina has a high crypto adoption, and following the resignation, the cost of buying the USDT stablecoin with Argentine currency surged.

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