Losses from the collapse of 3AC and Celsius were 3.5 times greater than losses from the FTX collapse
Study shows that the bankruptcy of Sam Bankman-Fried exchange caused many times less damage than previous crypto profits this year
Losses from the collapse of the FTX exchange were far from the biggest loss of crypto investors this year: the collapse of Three Arrows Capital (3AS) and Celsius brought 3.5 times more losses, according to a study by analytics platform Chainalysis. And the damage from the failure of the Terra project was more than twice the amount of money that investors lost due to the collapse of the Sam Bankman-Fried exchange.
Chainalysis presented a report on the consequences of major bankruptcies this year. The analysts' calculations are based on data on the profits and losses of users' personal wallets from January. They measured the value of assets in each wallet at the time they were acquired, subtracting assets sent to another wallet to account for changes in exchange rates. This methodology gave researchers insight into when investors recorded gains and losses.
According to the study, the collapse of LUNA and UST tokens in May this year led to a loss of $20.5 billion. In June, the almost simultaneous fall of cryptocurrency lender Celsius Network and investment firm Three Arrows Capital robbed investors of a total of $33 billion. The FTX bankruptcy in November caused $9 billion in losses.
Chainalysis notes that people who kept funds on FTX probably lost them completely. Whether they will be able to get them back is unknown. However, the most serious crypto losses of this year were incurred long before FTX collapsed.
FTX went bankrupt on November 11. Since then, its customers have already filed at least 7 class action lawsuits against its former head Sam Bankman-Fried, accusing him of fraud and illicit enrichment.