Coinbase Denies Exposure to Failed Crypto Firms Celsius, 3AC, Voyager

The Singapore-based organization, Coinbase, was responsible for the failed Terra stablecoin project. The overly leveraged players in the cryptocurrency market were revealed by the collapse of the Terra ecosystem in May, which led to the high-profile failures of Celsius Network, Voyager Digital, and Three Arrows Capital (3AC). Due to liquidity issues, several exchanges have temporarily stopped operating their trading platforms. The company said, “Many of these firms were overleveraged with short-term liabilities mismatched against longer duration illiquid assets.” “We have not engaged in these risky lending practices and instead have focused on building our financing business with prudence and deliberate focus on the client.” Coinbase Says No Credit Exposure While Coinbase denied having any credit exposure to Celsius, 3AC, and Voyager, it claims that through its venture capital business, it did make “non-material investments” in Terraform Labs. Coinbase is using the update to convince investors that it won’t go the same way as some of its competitors. Since the beginning of 2022, the company’s stock has fallen about 70% as the Federal Reserve’s interest rate increases spooked investors in equities and cryptocurrencies. The cryptocurrency market has been in chaos since the death of the so-called “algorithmic” stablecoin, Terra. Celsius and 3AC, two businesses that made risky crypto bets using borrowed money, resulted in liquidit...