US Federal Reserve’s branch in Chicago Chicago Fedpublished a review report on crypto startups that went bankrupt in 2022.
Celsius, Voyager, BlockFi, Genesis And of FTX Central bank experts investigating bankruptcy processes identified the factors that triggered the crisis in the crypto market. According to the Chicago Fed’s research report, the sudden withdrawal of institutional investors and whales played an important role in the collapse of centralized crypto platforms.
In the chart, it was determined that there was a withdrawal of $ 1.48 billion between 9-20 May on the bankrupt crypto debt platform Celsius. This figure corresponded to 19.9% of Celsius’ liabilities.
Between June 12 and July 2, an outflow of $1.25 billion at Voyager Digital accounts for 38% of the company’s liability. It is possible to see similar examples in BlockFi, Genesis and FTX.
Based on this data, FED experts determined that exits from whales and institutional customers caused a liquidity crisis on crypto platforms.
Another chart prepared by the Chicago Fed in its research report confirms the data. Medium and small-sized accounts moved more slowly, while customers with investments of more than $500,000 were withdrawing their money quickly.
For exclusive news, analytics and on-chain data Telegram our group, twitter our account and YouTube Follow our channel now! Moreover Android And iOS Start live price tracking right now by downloading our apps!