Crypto Weekly: collapse, chaos, contagion

STORY: From a meltdown at FTX, to rising fears of contagion to other firms, these are the week’s top stories in the world of alternative money…

It has not been a good few days for FTX boss Sam Bankman-Fried.

His exchange filed for bankruptcy on Friday, after a surge in withdrawals.

It now faces investigations around the world, and warns it could be pursued by more than a million creditors.

The company's collapse has seen more than $190 billion wiped from the value of the overall crypto market.

Rival crypto firms rushed to distance themselves from FTX.

But contagion remains the big worry for investors like Bianco Research boss Jim Bianco:

“FTX.com just didn’t have individual investors as their clients. They had other brokerage firms, hedge funds, trading shops.”

Crypto.com was one to face the spotlight.

Chief executive Kris Marszalek made an address on YouTube to rebut claims the firm was in trouble.

Crypto currency Solana looks like collateral damage.

It has lost more than half its value this month.

The token was seen as closely associated with Bankman-Fried.

He may have sold off his holdings of Solana during attempts to stay afloat.

Now some say stricter regulation will be needed to restore trust in the sector.

That idea found support from Binance boss Changpeng Zhao:

“So, but the regulators do have a role. We do need slightly more, we do need to increase the clarity of regulations, and the sophistication of regulations in the crypto space.”

Binance was briefly expected to save FTX, but rapidly abandoned a proposed rescue deal.