Crypto Investment Scams Result in $1B Losses, FTX Firms File for Bankruptcy with $6.8B Hole
In recent news, it has been reported that consumers have lost over $1 billion to crypto fraud between January 2021 and March 2022.
Investment scams promising high returns have caused one out of every four dollars to be lost.
This comes alongside the news that FTX firms filed for bankruptcy last November with a $6.8 billion shortfall in their balance sheet.
The deficit included $10.6 billion in the main FTX.com enterprise, while sister trading firm Alameda Research had net assets of $2.6 billion, and FTX Ventures had net assets of $1.3 billion.
This was due to huge crypto fraud losses, which have been a growing concern in the industry.
Additionally, the cryptocurrency market saw some significant changes in the last session.
The Bitcoin-Dollar pair experienced a 4.0% surge, and the MACD is giving a positive signal, matching the overall technical analysis.
The Ethereum-Dollar pair also saw a 2.1% increase, but according to the CCI, the market is currently overbought.
The Ripple-Dollar pair had a 4.8% increase in the last session, but the CCI indicates an overbought market.
Meanwhile, the Litecoin-Dollar pair had a 1.9% increase, and the CCI is giving a positive signal.
Furthermore, 186 banks are at risk of failure following Silicon Valley Bank’s collapse, even if only half of their depositors decide to withdraw their funds.
The Federal Reserve’s aggressive interest rate hikes to curb inflation have eroded the value of bank assets like government bonds and mortgage-backed securities.
Overall, it is a turbulent time for the crypto and financial industries, with fraud and bankruptcy being major concerns for investors and companies alike.