Crypto platforms Celsius and Voyager filed for bankruptcy protection

The debacle raises questions about what happens to investors’ funds when an exchange ends up failing

Traders hoping to recoup their funds from failed cryptocurrency exchanges anytime soon are likely to end up disappointed, legal experts tell CNBC

The company got caught up in the collapse of high-profile crypto hedge fund Three Arrows Capital, which itself went belly up after defaulting on a $660 million loan from Voyager

Cryptocurrencies aren’t regulated, meaning they don’t offer people the same protections they would get with money held in a bank

The Federal Deposit Insurance Corporation, meanwhile, offers bank depositors protection of up to $250,000 if an insured lender fails

Creditors of Mt. Gox, which went offline in 2014, are still waiting to get repaid billions of dollars’ worth of the cryptocurrency

“Exchanges will often pool different customers’ crypto and funds together in the same storage wallet or account.”