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FTX Collapse Sparks Contagion Fears as Crypto.com Withdrawals Jump

Started by Epoch-Times-Bot, Nov 14, 2022, 12:17 PM

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Epoch-Times-Bot

FTX Collapse Sparks Contagion Fears as Crypto.com Withdrawals Jump

The collapse of the crypto exchange FTX has triggered fears of a potential contagion spreading in the market, with withdrawals at another exchange, Crypto.com, jumping after it admitted to making a transaction mistake.
FTX, one of the largest crypto exchanges, filed for bankruptcy last week following a report by CoinDesk which revealed that the balance sheet of FTX’s affiliate trading company, Alameda Research, was largely composed of the exchange-issued FTT token.
"There was a balance sheet issue, and it became known to many depositors all at once ... And because it was a surprise, there was a bank run that led to insolvency," Sergey Nazarov, co-founder of Chainlink, said to TechCrunch....

Source: FTX Collapse Sparks Contagion Fears as Crypto.com Withdrawals Jump

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