What does the future look like for crypto lenders?
Five years ago, the nascent crypto lending market looked promising. Crypto lenders like Salt Lending, Celsius Network, BlockFi, Voyager Digital, Nexo and Unchained Capital were meeting a demand among digital asset investors who wanted a tax-free return on their money. They had already weathered a crypto downturn and were confident their future looked bright.
In the past year, Celsius, Voyager and BlockFi have filed for Chapter 11 bankruptcy and have been sued by former customers and partners. New York Attorney General Letitia James filed a lawsuit against Celsius CEO Alex Mashinsky for allegedly defrauding hundreds of thousands of investors out of billions of dollars worth of cryptocurrency. The Securities and Exchange Commission has sued BlockFi, Genesis Global Capital and Gemini Trust Company over their crypto-lending programs, claiming they violate investor-protection laws.
But in spite of these setbacks, some observers believe there is life left in the concept of crypto lending and that the industry will go on.
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