Remembering FTX, Celsius Network, Three Arrows Capital, Terra

2022 has been a disastrous year in the crypto industry. This has seen all crypto projects losing value and some organizations filing for bankruptcy. Here are the major events that happened in the 2022 crypto crash.

The Crypto Crash In 2022 Was The Biggest Ever

The crypto crash of 2022 has become the biggest ever recorded. It wiped out about two-thirds of the value of the entire market. Fortunately, this has coincided with a major global financial meltdown that has caused massive inflation in the UK and US, all countries at risk of recession.

It has also coincided with a major stock market shrink and pullback. Thus, crypto investors can breathe a sigh of relief knowing that their innovation is not doomed but part of a major financial crisis. The crypto market has fallen to over $2T from the $3T it recorded in November 2021.

Although these events make it seem like the crypto space has been the angel this year in the finance sector, it is far from the truth! This year has exposed much of the rot that has led to the downfall of large crypto empires such as Terra Luna Ecosystem and FTX, plagiarizing many investors in the process.

lie exposed

Following the massive crash, 2022 has seen several falsehoods emerge in the crypto space.

Here are some big ones:

ftx collapse

ftx group collapsed Following a leak in mid-November that the FTX International Exchange did not have enough funds to match customer deposits 1:1. As a result, people panicked and began a series of horrific death spirals by withdrawing all their possessions at once.

He withdrew over $5B in one day. The exchange could not execute the transaction due to ‘low liquidity’. The saga took the exchange on its deathbed, and the authorities had to sell FTT tokens to try and fund some of the withdrawals. It also filed for bankruptcy.

However, the Chapter 11 bankruptcy filing worsened matters; All the lies and rot were exposed in the exchange. Major crypto news companies such as investigated the matter and found some interesting lies that were made there.

The exchange had spent customers’ money illegally and made no effort to find replacement funds to cover it in emergencies such as the withdrawal requests made on November 11 and 12. It was also used illegally to fund the loans and projects of its founders. , like Bankman-Fried’s Alameda research.

More lies surfaced, such as when the exchange would give money to its CEO’s parents for no work. It also hid over-the-counter (OTC) desk and counterfeit retailers that it used to swindle its customers’ money. More rot was revealed when the media learned that the exchange had taken loans from bankrupt Blockfi, a major crypto lender.

The exchange made a loan to Almeida which the FTX co-founder used to buy Robinhood shares. These shares were used as collateral for another loan from Blockfi. However, the co-founders of FTX never repaid the loan and now want to take back the Robinhood shares.

During the climax of the exchange’s slump, a suspicious hack occurred. Some experts claim that the hacker’s widespread effort to access funds from various holdings, including cold wallets, shows that an inside job was done. Now the US DOJ is investigating that hack.

terra luna fall

Terra Luna’s ecosystem collapse in May was one of the biggest meltdowns in 2022. This ecosystem consisted of an algorithmic stablecoin, UST, and a hyper deflationary token, Luna. LUNA operates the UST and also helps maintain its moorings.

The CEO of the ecosystem was Do Kwon, a self-proclaimed stablecoin king. There are many controversies regarding the decline of his empire. Some of the lies exposed include that large corporates such as Blackrock had bought large sums of UST. As a result, a large amount of LUNA was mined to match the new supply of the stablecoin.

The report claimed that Do Kwon had received large sums of bitcoin in exchange for printed USTs without the knowledge of the Terra community. However, Blackrock and other compatriots went against the deal and left UST heavily. As a result, the supply of UST in the market did not match the total value locked up, leaving it decoupled from the USD.

As the crypto community saw that the death spiral had begun, they began heavily dumping their UST.

As a result, the Luna token had to be heavily mined to try and defend the UST peg. However, the LUNA token was also being dumped and neutralized by its increasing supply. Eventually, both coins went down by $1 and cents to $95+. When the Terra ecosystem was formed, they created Project Luna 2 and retitled the original project as Luna Classic (Lunch,

Some of the lies revealed in Terra Ecosystem Meltdown include the Blackrock sabotage. Kwon knew he messed up, got away with his money, and allegedly dissolve A few weeks before the collapse of his South Korean Terraform Labs entity Terra Ecosystem.

Subversion and insider jobs increase

Subversion and inside jobs were the biggest reasons for the collapse of crypto empires in 2022. The FTX fiasco can easily be classified under this category as sabotage and inside jobs played a big role in what happened. Bankman-Fried was one of the contributors to the US Democrat Party. a coincidence? maybe or maybe not.

During its downfall, the $400M hack on the FTX ecosystem was too well organized to go down as any other hack. How could hackers get their hands on the cold storage of the exchange? Furthermore, the Alameda research ‘lost’ crypto wallet came to life shortly after Bankman-Fried was laid off for a record $250M job.

The collapse of Terra was also an example of clear sabotage and an inside job. BlackRock and other entities bought massive amounts of UST only to dump it and trigger the death spiral of the ecosystem, hurting hundreds of thousands of investors, if not thousands. Do Kwon, the CEO, was also to blame as he thought it was a good idea to accept ‘offers’ from corporate investors.

bankruptcy in 2022

ftx group

FTX Group filed for Chapter 11 bankruptcy After its collapse in Nov. It reported that he had assets in the range of $10B to $50B and had liabilities within the same range in the court filing. The exchange also issued a statement revealing that it had filed for Chapter 11 proceedings in the US state of Delaware to kickstart assets to repay customers.


Celsius Network, a crypto lender, also fell at the hands of the brutal 2022 crypto crash. it Filed for Chapter 11 Proceedings In July in a US Court for the Southern District of New York. The crypto lender said it only had $167M left in its accounts so it folded its hands and halted all customer withdrawals to give it time to look for more funds.

“We have a strong and experienced team to lead Celsius through this process. I am confident that when we look back on the history of Celsius, we will see this as a defining moment, where determination and belief Serving the community and strengthening the company’s future by working with

Alex Marchinsky, CEO of Celsius Network.

three arrows capital

Also crypto hedge fund Three Arrows Capital (3AC) filed for bankruptcy In early July following a ruling by a British Virgin Islands court to force its BVI branch into liquidation. The firm filed for Chapter 15 proceedings in the Southern District of New York court.

The reason behind the liquidation of the 3AC BVI branch was that it had large outstanding dues to BlockFi, Celsius, Voyager Digital and Babel Finance. Its lenders froze withdrawals and needed a credit line, which put the platform in a more difficult position.


crypto lender blockfi too filed for Chapter 11 bankruptcy proceedings In November, nearly two weeks after the collapse of FTX, citing insufficient funds to continue operations and reimburse investors.

crypto kings split in 2022

Many ‘high value’ individuals who ruled the crypto space over the years were ousted in 2022 following the collapse of their empires. This is some of them.

Sam Bankman-Fried

Sam Bankman-Fried is one of the biggest crypto kings caught in the ropes in 2022. His FTX empire collapsed because it was built on malice, financial misconduct and dishonesty. Now, he is facing charges in the US that could lead to over a hundred years in prison. He was also recently released on a record bail of $250M. His fate is still unknown as the case against him is yet to be closed.

do quon

Doo Kwon, CEO of Terraform Labs, ruined his reputation as a major crypto stakeholder earlier in the year after the collapse of the Terra ecosystem. Information leaked that he participated in the collapse of the exchange and that it was sabotage, not accidental. Now, he is on the Interpol Red List, South Korea is looking for him and has issued an arrest warrant.

What’s next for crypto?

The crypto space was rocked by many things in 2022, from massive and repetitive crashes and fraudulent activities. However, that’s not all we’ll see from this innovation, as it’s still going strong despite the tribulations.

Now, what will decide the future of the crypto space is how it will grow from the developments that have taken place this year. If it takes them as a lesson, it’ll certainly thrive, but if it takes them as a death spiral trigger, it’ll be a wild turn.

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