The collapse of cryptocurrency exchange FTX FTT/USD has not been the biggest concern for investors this year.
Recall the de-pegging of Terra’s USTC/USD token and the collapse a few weeks later of Celsius and Three Arrows Capital (3AC) — investors suffered much bigger losses in those two scenarios.
Investors lost $20.5 billion in the case of UST and a whopping $33 billion in the case of Celsius and 3AC, versus just $9 billion for FTX, according to a Chainalysis report.
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In May, Terra's UST lost its peg and eventually collapsed. The implosion of Three Arrows Capital in July and the bankruptcy petition by Celsius were both caused by a chain reaction that started with UST’s collapse.
After allegedly misusing consumer funds, FTX later faced a liquidity crisis and filed for Chapter 11 bankruptcy protection in November.
Sam Bankman-Fried, the former CEO, was later arrested in The Bahamas for alleged fraud.
FTX Fraud Affected People On A Personal Level
FTX was the event that affected people the most on a personal level since they are "likely to lose any funds they kept on the exchange, and the likelihood of recovering them is unknown," Chainalysis reported.
From a market-wide perspective, "the heaviest-hitting crypto events of 2022 were already behind investors by the time the FTX debacle took place."
Chainalysis measurement of realized gains and losses for a set of personal wallets over a specific time period gives investors a directional sense of when they lock in gains and losses.
Next: White House Press Secretary Dodges Question On Whether Biden Will Return $5.2M In Donations From Bankman-Fried
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