Crypto’s Brutal Week Ends With a Trading Halt and a Bailout

(Bloomberg) -- The meltdown in cryptocurrency markets deepened this week, as major players contended with liquidations, withdrawal freezes, trading halts -- and, at least in one case, a bailout.

Crypto broker Voyager Digital Ltd. on Friday announced a suspension of trading, deposits and withdrawals, while BlockFi, a major digital-asset lender, won the backing of exchange FTX US with the potential to be acquired. Both companies were upended by the woes of Three Arrows Capital Ltd., the beleaguered crypto hedge fund that was ordered for liquidation by a British Virgin Islands court this week and filed for Chapter 15 bankruptcy protection in New York.

Meanwhile, crypto markets slumped, adding to a decline that has wiped away some $2 trillion of market value.

“I had begun to think that dominoes had stopped falling in mid-June,” said Aaron Brown, a crypto investor and Bloomberg Opinion contributor. “I suspect by Tuesday morning there will be more bad news, although I make no specific predictions.”