Cryptocurrencies that boomed during COVID-19

Recently, a slump brought on by the downfall of a major token in May and a global risk-off sentiment have resulted in a panic for Reuters -- Cryptocurrencies, which boomed during the COVID 19 epidemic.

Some of the firms that have recently run into trouble are listed below.

The South Korea-based company, which is behind the dollar-pegged stable coin Luna and its paired coin TerraUSD, has plunged in value in May, sparking sell-offs and sparking a chain reaction.

In May, the company's co-founder, Do Kwon, announced a recovery plan with additional outside funding and rebuilding of TerraUSD so that it can be backed by reserves rather than by an algorithm to maintain its 1: 1 dollar peg.

An official at South Korea's Supreme Prosecutors' Office said on June 21 that several employees of Terraform had been put on a no-fly list and can't leave the country.

The U.S. based crypto lender said on July 6 it had filed for bankruptcy.

In its Chapter 11 bankruptcy filing, Voyager estimated that it had more than 100,000 creditors and somewhere between $1 billion and $10 billion in assets and liabilities worth the same value.

On June 29, the Singapore-based hedge fund entered a liquidation, two days after getting a notice of default from the lender Voyager for failing to make payments on a loan of $650 million.

According to a court filing on July 1, the company was seeking protection from creditors under the U.S. bankruptcy code's Chapter 15, which allows foreign debtors to shield U.S. assets.

The lending company froze its services, citing extreme market conditions, and has hired advisers on a possible bankruptcy filing.

A quarter of its workforce was laid off by the American-Israeli company on July 4, according to Calcalist.

On July 4, the Singapore-based company said it had suspended withdrawals for its more than 800,000 customers. In a blog post, Vauld said it was facing financial challenges due to volatile market conditions.

On June 17, the Hong Kong-based criptocurrency lender said it temporarily suspended withdrawals and redemption of assets, as the company struggles to pay its clients.

Due to the current situation, Babel Finance is facing unusual liquidity pressures, the company said, highlighting high volatility of the digital currency market.