The stunning implosion of cryptocurrency exchange FTX, which mismanaged $8bn of customers’ digital assets and suffered a bank run on exchange deposits, initiated a second major crypto contagion event in just six months.
The cryptocurrency sector is showing early signs of stabilisation after two successive implosions – the collapse of the Terra Luna ecosystem and crypto hedge fund Three Arrows Capital – which unleashed a tidal wave of contagion across the broader digital assets market.