By Evan Spicer
Director of Cryptocurrency Investigations
MyChargeBack
Crypto winter has led to a spring meltdown of digital assets, as evidenced by prominent cryptocurrency hedge fund, Three Arrows Capital, defaulting on a loan worth over $670 million. Crypto lender Voyager Digital sounded the alarm when it announced that Three Arrows was unable to pay back a $350 million loan in stablecoin, which is pegged to the U.S. dollar and 12,520 bitcoin worth $323 million, according to CNBC
Three Arrows, like other companies dependent on cryptocurrency, has taken a significant hit as cryptocurrency assets have erased their gains in the past months. Cryptocurrency market value now hovers around $950 million down dramatically from its high of $3 billion in November 2021.
Voyager Digital issued the public statement to clarify that it intends to pursue what is owed by Three Arrows and to assure consumers of its own stability at a time when other crypto financial services are going under or freezing customer funds amid the shocks of the digital currency market.
The crypto lender is practicing a kind of transparency uncharacteristic of the rest of the industry with the unsolicited disclosure that it has $137 million in U.S. dollars and crypto assets and has access to an additional $200 million in cash. This is to allay any fears at a time when crypto services, such as Celsius, are locking down funds and sending ambiguous signals to its account holders.
Should You Trust Crypto Brokers?
With the recent fall in the price of bitcoin, some may be tempted to buy crypto assets into weakness. The slogan “buy low, sell high” is often an investor’s rallying cry. But what if crypto assets have further to fall? The first question to answer before going bargain hunting for crypto assets is will they really be a bargain or will the value continue to drop?
Another consideration is deciding which crypto brokers to trust. Not only should consumers be on the lookout for crypto scams with the intention to swindle customers, but also once-stable brokers and trading services like Celsius, which may panic when faced with a crash or sudden insolvency.
Would-be traders might ask if cryptocurrency trading is worth the risk. The first step may be to slow down and avoid buying on desperation. Even experts on cryptocurrency trading may not be able to find the optimum entry point for buying crypto coins. Waiting until the market seems to be in recovery is the best course of action. This means doing plenty of daily research into what is going on with cryptocurrency and paying attention to reliable cryptocurrency experts and analysts.
The next step is finding the right broker. Look at regulation and the quality of their licenses above all. Also, make sure they are open and transparent about who runs the brokerage, how to get into contact with them and how open the lines of communication are with clients.
Take a look at market capitalization as well. Do they have plenty of funds to cover themselves and their clients if there is a crisis? Top-tier regulators will require their licensees to have a minimum market capitalization to protect themselves and their clients. The regulators also deal with complaints and will provide accountability to your broker if the market should decline.
If you find you have trouble getting your funds back from your current broker, you need assistance and experts on your side. The MyChargeBack team will launch a full investigation into your case and the broker and improve your chances of a successful outcome to your dispute.
MyChargeBack Will Investigate Your Crypto Case
If you have lost money on the blockchain through unregulated brokers, bitcoin wallet hacking or fake merchants, talk to the MyChargeBack team. Our crypto investigations will provide evidence to bolster your claim.
MyChargeBack has developed working relationships with law enforcement agencies worldwide, have extensive knowledge and experience with crypto tracking and can improve your prospects of getting your funds back.
