FTX Collapse Costs Crypto Investors Nearly $9 Billion in Realized Losses, According to Chainalysis report.
Chainalysis notes that this loss pales in comparison to Terra’s UST depeg, which caused a $20.5 billion loss. The bankruptcies of crypto companies such as Celsius and Three Arrows Capitals have resulted in $33 billion in realized losses.
According to Chainalysis, weekly realized losses and gains are calculated by taking the value of the assets in the wallet at the time of acquisition minus the value of the portion of the assets transferred out of the wallet at the time the data was recorded.
Transferring assets out of a wallet doesn’t necessarily mean a sale, but it does give insight into how those events impacted investors. This data shows that many investors had already lost significantly more value before his FTX crash.
However, this data does not include people who have lost their deposits on FTX exchanges.
CryptoSlate reported that realized Bitcoin (BTC) losses hit a yearly high of $4.3 billion after the FTX collapse.
Reports reveal that over 1 million creditors have been affected by the FTX collapse, with at least $8 billion in lost funds. Cryptocurrency exchange founder Sam Bankman-Fried has been arrested in the Bahamas and faced criminal charges in the United States.
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