FTX Crash Financial News

FTX crash, regulatory enforcement actions, recent security breaches on DeFi protocols, and attacks on Stablecoin liquidity pools, have eroded the cryptocurrency's stability promise. A Stablecoin is a popular form of cryptocurrency designed to maintain a constant value through a peg to another asset. In 2022, the cumulative market capitalization of Stablecoins was around $180 billion, which declined to nearly $120 billion in 2023. «Many investors have chosen to divest their Stablecoin holdings, partly in reaction to lack of transparency around the underlying reserves that support many stablecoins. In a rising interest rate environment, the appeal of higher yields offered by traditional assets is also likely contributing to a shift away from stablecoins,» Moody's said in its report.

crypto investors, with Bitcoin seeing its most significant weekly drop since the November 2022 FTX crash. In the past week, Bitcoin declined 11.5%, hitting $26,023.3, according to CoinGecko's data as of 5.30 pm on Monday. Similarly, significant alternative cryptocurrencies like Ethereum fell 9.7%, Ripple lost 16.9%, Solana crashed 13.3%, and memecoins such as Dogecoin and Shiba Inu declined nearly 16%. The broader market was already in a bear phase, but Bitcoin faced an 8% plunge on August 18 as Elon Musk's SpaceX reportedly divested its Bitcoin holdings, akin to Tesla. SpaceX had accumulated $373 million in Bitcoin during 2021-2022.

Prosecutors and attorneys for FTX founder Sam Bankman-Fried are requesting the disgraced cryptocurrency entrepreneur be allowed a flip-phone or another device thats not a smartphone while on bail.

Sam Bankman-Fried’s legal team is discussing a deal with federal prosecutors that could allow the disgraced cryptocurrency mogul to be released on bail when he is extradited to the United States, according to three people with knowledge of the matter.

Berkshire Hathaway Inc (BRKa.N), run by billionaire Warren Buffett, on Friday warned investors it has no affiliation with a purported cryptocurrency brokerage website using the Berkshire Hathaway name.