The Worst Cryptocurrency Crashes of 2022

2022 no doubt cryptocurrency It did not go well for the industry. Although the changing macroeconomic conditions around the world affected all markets, cryptocurrencies suffered a great loss due to some sad events in the sector. Money stolen from projects, collapsed companies and stock markets caused a great loss of confidence among investors.

In this article, we will cover the worst events in the crypto industry over the past year.

NFT Sector: Axie Infinity Attack

Blockchain-based most popular NFT game Axie Infinity suffered a massive cyber attack last March. By attacking the blockchain network running Axie, the hacker stole $625 million worth of Ethereum from the game. This attack went down in history as the biggest piracy case in the gaming industry.

Stablecoin Sector: The Collapse of TerraUSD

In the stablecoin market Tether (USDT) and Binance USD (BUSD) one of its biggest competitors Terra (Luna)turned upside down on May 7 after over $2 billion in assets on the platform were liquidated. The venture’s dollar-denominated stablecoin TerraUSD (UST)the US dollar lost its stability and caused a great panic.

The person held responsible for this incident was Terra founder Do Kwon. South Korean law enforcement issued an arrest warrant for Kwon on September 14.

Stock Market: The Bankruptcy of FTX

Cryptocurrency exchange that has grown at an incredible pace in recent years of FTX founder, who was in a dire situation Sam Bankman-Fried It was revealed after an altercation between Binance CEO Changpeng Zhao.

Users wanted to withdraw their money from the stock market in bulk, but the safe was empty. The crypto giant has filed for bankruptcy after Bankman-Fried transferred client funds as debt to its subsidiary company Alamenda Research.

Bankman-Fried, who caused the victims of millions of users, was recently arrested and extradited to the USA. In the hearing held in the United States, it was decided that SBF be tried pending trial in exchange for $250 million bail.