On Sunday, the authorities in The Bahamas said they were investigating potential criminal misconduct surrounding the company’s implosion. Here is how things have unfolded over the last few days, showing the crisis has only just begun.įTX moved its headquarters from Hong Kong to The Bahamas last year, with former CEO Sam Bankman-Fried hailing it as “one of the few places to set up a comprehensive framework for crypto” at the time. Another big name from the industry has also admitted to mishandling funds, spooking investors even more. He said last week that comparing the current crypto turmoil to the 2008 global financial crisis is “ probably an accurate analogy.”īinance had reached a tentative rescue deal with FTX earlier last week, but that transaction almost immediately fell apart.įTX has continued its downward spiral after filing for bankruptcy on Friday. “We have seen in the past week things go crazy in the industry, so we do need some regulations, we do need to do this properly,” he added.ĬZ, as he’s known, was speaking at a conference in Indonesia on Monday. There is a “lot of risk,” said Changpeng Zhao, who runs Binance, the biggest crypto exchange. Some of the biggest names in the business said they will welcome the scrutiny, if it helps restore faith in the industry. The episode has not just destroyed confidence in the crypto industry, but will also embolden global regulators to tighten the screws. Some industry insiders have said the company’s downfall had triggered a “Lehman moment,” referring to the 2008 collapse of the investment bank that sent shockwaves around the world. The plunge comes as investors continue to grapple with the stunning implosion of FTX, one of the biggest and most powerful players in the industry. It was trading at about $1,230 on Monday, having sunk over 20% over the last week, CoinDesk data showed. Analysts believe that it could fall below $10,000.Įther, the world’s second most valuable cryptocurrency, isn’t faring much better. It was trading at about $16,500 on Monday, according to CoinDesk. Bitcoin, the world’s biggest cryptocurrency, has plummeted about 65% so far this year. Prices of digital currencies fell again as the crisis engulfing the market deepened over the weekend. Aftershocks from the massive earthquake in the trillion-dollar crypto industry last week continued to reverberate on Monday.
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