Three Arrows Capital is said to have filed for Chapter 15 bankruptcy on Friday in New York according to business insiders and other news around. It finally resorted to it after getting exposed as being insolvent and unable to repay its loans from different crypto lenders like Celsius, BlockFi, Babel Finance, Voyager Digital, Blockchain.com, Deribit and probably more to surface.
And Voyager was reported to have suspended depositing and withdrawals too. Things seem to be getting out of control for those companies who have been involved in crypto lending and or borrowing.
These things happening show the dark side of borrowing and getting into bad debts. It reminded me of someone I know who over borrowed until he can no longer pay and then everything started to crumble for him.
- Demand letters coming from all over the place
- Threats of being sued
- Getting summoned by the local authorities
- Being shamed
- Properties sold lower than the market price
- Assets getting seized by creditors until there is no more
and many other unpleasant experiences he had to go through and even trying to hide until he finally gave up.
Leveraging in crypto became attractive to those who have appetites for high risks. It gives them the chance to have more purchasing ability to trade with so much more than what they actually have in their account balances (under-collateralized or over-leveraged however you see it). Unfortunately, it also carries with it so much risks which more often than not, lead to big losses when the market plays the other way than what they bet on. Even experienced traders get burnt.
I was listening to the LeoFinance AMA recording a few days ago and got a really good chuckle on the part where Khal mentioned some 4 Ls to avoid "trouble" in crypto space as 
I encourage you to though to go watch the replay, because there are other valuable things that were discussed by 
Personally, borrowing and leveraging is good as long as one knows how to avoid the underlying risks. Meanwhile, the grind continues for us whilst the market is doing what it does.
Logo/s, images and or screenshots are from LeoFinance. 4L on lead image grabbed from onealfa, edited. No copyright infringement intended. 030722/11:43ph