Crypto industry grapples with FTX fallout as trial looms

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The collapse of cryptocurrency platform FTX, whose disgraced former boss goes on trial this week, sparked shock waves worldwide, with regulators still seeking to get to grips with the sector.

Sam Bankman-Fried, once the wunderkind of crypto, will appear in a federal New York court on Tuesday facing seven counts of fraud that could see him spend decades in prison, capping a spectacular fall from grace.

The crisis also prompted a mass exodus of capital from the highly speculative industry and a string of other business failures. Stanford, author of best-selling book"Crypto Wars", said the FTX bankruptcy had also affected a lot of"people from the industry". The turmoil ultimately sparked the demise of a virtual trading business that at one point had been valued at $32 billion.

"Venture dollars are down for five consecutive quarters and crypto trading volumes are at the lowest levels we have seen in about four years," Fathieh told AFP.Most cryptocurrencies, including bitcoin, the world's most popular unit, are powered by blockchain technology that is decentralised -- and therefore tended to operate off the regulatory radar.

 

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Crypto industry grapples with FTX fallout as trial loomsThe collapse of cryptocurrency platform FTX, whose disgraced former boss goes on trial this week, sparked shock waves worldwide, with regulators still seeking to get to grips with the sector. The FTX furore sparked a crackdown from global regulators.
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