What happens during a crypto crash with Lantern? A case study in borrower protection
LAS VEGAS, Oct. 24, 2025 (GLOBE NEWSWIRE) — Lantern Finance, Inc. today announced that during the industry-wide turmoil of October 10 — when over $19 billion in leveraged crypto positions were liquidated across major platforms — zero of Lantern’s borrowers experienced forced liquidations. The company’s conservative risk-model and borrower-first structure ensured that users maintained full control of their collateral.
The seismic market event was triggered by an unexpected 100% tariff announcement on Chinese goods, which sparked a rapid unwind of leveraged crypto holdings. Within minutes, major assets such as Bitcoin and Ethereum plunged 10%–12%, and other digital assets lost as much as 70%. Many platforms paused services, auto-liquidated positions with no warnings, and forced sales took place at the worst possible prices.
By contrast, Lantern’s borrowers emerged unscathed.
“When markets collapsed across the industry, our approach proved its worth — not one client lost collateral,” said Jung Won Kim, Cofounder of Lantern Finance. “We built a platform that protects users first, not one that profits from panic.”
“Our mission has always been to give crypto-holders access to liquidity without the risk of losing their assets during turmoil,” added Prince Jindal, Cofounder of Lantern Finance. “This event validated our design: conservative LTVs, human-centered oversight, and ample response time make all the difference.”
How Does Lantern Prevent Liquidations?
Lantern’s approach to risk management is explained in detail on its blog post, “$19 Billion in Crypto Liquidations. Zero at Lantern”.
Unlike other lenders that auto-liquidate users instantly, Lantern structures its loans with:
- 50% maximum LTV, compared to 75–90% elsewhere.
- 65% margin-call threshold, triggered only after a ~23% price drop.
- 72-hour grace periods for borrowers to respond before any forced liquidation.
- Human oversight, not algorithms, during stress events.
These safeguards helped ensure zero customer losses during October 10’s “Black Friday” crash.
Why This Matters for Crypto Holders
In volatile markets, most lending platforms treat borrowers like algorithmic targets — no warning, no recourse, just forced liquidation at the worst moment. Lantern flips that dynamic. By aligning incentives with users, rather than profiting from their failure, Lantern gives long-term crypto investors access to liquidity and a strong buffer against downside events.
As markets remain sensitive to geopolitical headlines, Lantern will continue strengthening its crypto-backed loan platform, expanding supported assets, and deepening risk management. With this milestone, Lantern affirms its commitment to helping users borrow safely, flexibly, and without unnecessary panic.
For more information, visit lantern.finance or read more on the Lantern Finance Blog.
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Lantern is a financial services and technology company built for crypto investors. Our mission is to simplify the world of crypto finance by offering a safe, seamless platform where users do more with their crypto assets. Lantern’s primary offering is a crypto-backed loan product, which allows clients to safely access loans against their crypto holdings.
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