Crypto Markets Fall over FTX bankruptcy (2024)

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Crypto Markets Fall over FTX bankruptcy? ›

The value of FTT plummeted, taking other coins down with it including Ethereum and Bitcoin, which reached a two-year low on Nov. 9, 2022. Other exchanges were affected by the FTX collapse, including BlockFi, which filed for bankruptcy on Nov.

Studying the impact of the collapse of FTX on financial markets, we identify that, while this event was important to cryptocurrency markets, it was mostly irrelevant to traditional assets. Bitcoin, ethereum, and binance responded significantly negatively, while equity, energy, and currency markets were largely unmoved.

At Bankman-Fried's sentencing hearing, Kaplan agreed. He said FTX's customers had lost some $8bn and that its investors had lost $1.7bn.

Tom Brady is the most famous face to promote and invest in FTX — and he also may have suffered the greatest individual loss. The Tampa Bay Buccaneers quarterback owned over 1.1 million common shares of FTX Trading, which equaled about $45 million before the company went bankrupt, according to Bloomberg.

Nov 3 (Reuters) - The cryptocurrency market is starting to bounce back a year after the collapse of crypto exchange FTX and other big players in 2022 crushed prices, tarnished the industry and prompted a regulatory crackdown.

As a result, he advises investors to be patient in the long run by looking beyond the current environment. He stated, "Everybody is a long-term investor until they have short-term losses." The crypto market has recently shown signs of recovery, with Bitcoin reaching higher highs than anticipated in the short term.

CRUMBLING MARKET CAP

After peaking at $3 trillion in November 2021, the value of the overall crypto market plummeted through 2022, hitting a two-year low of $796 billion as FTX imploded. It has since clawed back some ground, hovering above $1 trillion most of this year.

So where did all the money go? FTX spent big on investments in technology startups. For example, FTX paid $1.15 billion to acquire around 20% of Genesis Digital Assets, a crypto miner that ran a number of mining facilities in Kazakhstan. The firm spent $243 million on real estate in the Bahamas…

According to the prosecution, Bankman-Fried stole “billions of dollars” from the crypto exchange's customers “out of sheer greed”. One key issue was how much money FTX's customers lost. During the trial, the prosecution and its witnesses repeatedly – in fact, 97 times – put that number at $US8 billion ($12 billion).

Shortly afterward, FTX investigators said they discovered $8.9 billion in customer assets were missing from the exchange. FTX founder and ex-CEO Sam Bankman-Fried faces seven criminal charges of fraud and campaign finance violations. He pleaded not guilty to all charges. Jury selection begins in New York on Tuesday.

Will I ever get my FTX money back? ›

FTX bankruptcy: What customers should know about getting crypto and Bitcoin money back. According to the company, all customers will be recouped for their losses—but there's a catch. It's been more than a year since FTX, a one-time mammoth cryptocurrency exchange, collapsed and subsequently declared bankruptcy.

For FTX customers, being made whole, according to a judge's ruling, means getting the cash equivalent of what their crypto was worth in November 2022. In other words, they're not seeing any of the upside of FTX's investments or being given virtual coins that would allow them to cash out at higher valuations.

Key Takeaways. A new report from the FTX debtors team indicates the failed crypto exchange owes customers $8.7 billion worth of assets. The vast majority of misappropriated assets, roughly $6.4 billion, are denominated in either fiat currency or stablecoins.

It is theoretically possible. Bitcoin has been around for close to 15 years now, and although it has survived several dramatic crashes before making new highs, its extreme volatile nature puts investors at risk of losing all their money.

A recent report predicts that Bitcoin will reach a new all-time high in 2024. Bitcoin (BTC) is expected to reach a new record of $88,000 (€82,000) throughout the year, before it settles around $77,000 at the end of 2024, according to a new report. The cryptocurrency's current price sits at around $43,000.

The leading cryptocurrency by market value fell over 8% to under $62,000, data from charting platform TradingView shows. That's the biggest single-day percentage (UTC) decline since Nov. 9, 2022. That day, prices tanked over 14% as Sam Bankman Fried's FTX, formerly the third largest crypto exchange, went bankrupt.

Although holding money with FTX was touted as secure -- as safe as keeping money in a bank -- Buckman says that after someone buys cryptocurrency on an exchange, transferring that money to a noncustodial wallet (a separate wallet controlled by the investor) "is the only safe way to store crypto."

The company's spectacular downfall could cause future investors to be more cautious, and government agencies that oversee digital assets to be clearer and more stringent. On Tuesday, November 22nd, the first hearing was held in the bankruptcy case of the cryptocurrency exchange FTX.

According to Coinbase, the platform now have 108 million verified users across more than 100 countries with $101 billion in assets and $159 billion in quarterly volume traded. Despite its strong market position and potential, Coinbase is not immune to the FTX debacle.