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9 Companies That Hoarded Customer Money During The Crypto Crash

Traders work on the floor of the New York Stock Exchange (NYSE) on May 5, 2015 in New York City.

Traders work on the floor of the New York Stock Exchange (NYSE) on May 5, 2015 in New York City.
Photo: Spencer Platt (Getty Images)

There is no getting around the problem, June was a disastrous month for cryptocurrency.

Although cryptocurrency prices have downward trend for most of 2022, investors have really had their rug pulled out from under them over the past two months. With bitcoin prices in particular free fall at values ​​not seen since 2020, exchanges and lenders were forced to do something few expected. One after another, companies stop or severely limited withdrawals, leaving investors uncertain if they would ever see their real money again.

Although some of these companies have since resumed withdrawals, others only have offered hints of optimism without tangible promises. Jhere are reasons to believe that the worst may be yet to come. In a interview With Forbes earlier this week, Sam Bankman-Fried, the founder of huge crypto exchange FTX, said he was pouring hundreds of millions of dollars into struggling exchanges to keep them afloat, but added that There were others who he said are already “secretly insolvent”. .”

“There are companies that are fundamentally too far behind and it’s impractical to support them,” Bankman-Fried said.

Here are a handful of crypto, exchange, and investment firms that have already had to reckon with the pullback of freezes.