FTX debacle sparks investor rethink of battered crypto market

, had rung alarm bells even before the fiasco at FTX, headed by Sam Bankman-Fried.

FTX is scrambling to raise about US$9.4 billion from investors and rivals, a source said on Thursday. FTX's swift fall from grace followed heavy speculation about its financial health that triggered US$6 billion of withdrawals in just 72 hours earlier this week. The company had published a valuation of US$32 billion as recently as January.

Unlike traditional corporations and financial firms, crypto entities operate in a regulatory grey area. For instance, deposits at crypto lenders are not insured by the government. "The show must go on, the industry needs to keep growing, but it's definitely a step-back in itself when you see the poster child of the industry being put in this position," said Jean-Marie Mognetti, chief executive of crypto asset manager CoinShares.

In an interview with CNBC on Thursday, Microstrategy Chairman Michael Saylor said he will continue to acquire bitcoin when the opportunity presents itself.

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