2022 was the year of the crypto winter. 2023 might be the year of the crypto apocalypse.

2/
For anyone who needs a refresher, here’s what happened:

A bunch of twenty-somethings who were all sleeping with each other went to the Bahamas and set up crypto exchange FTX and trading house Alameda, which were valued at $32 billion.

Then everything fell apart.

— Genevieve Roch-Decter, CFA (@GRDecter) November 18, 2022

4/
Then Binance said it might buy FTX, but pulled out once they saw the $8 billion “black hole” in the FTX balance sheet.

To top it off, the SEC and DOJ launched an investigation into securities-law violations at FTX.

— Genevieve Roch-Decter, CFA (@GRDecter) November 18, 2022

6/
Just two days ago, crypto lender BlockFi froze customer withdrawals and prepared for bankruptcy. BlockFi held $3.9 billion in client assets in the second quarter this year.

Crypto lender Celsius had about $13 million in under-collateralized loans to Alameda.

— Genevieve Roch-Decter, CFA (@GRDecter) November 18, 2022

https://twitter.com/GRDecter/status/1593635212809981952

10/
Binance didn’t have direct exposure to FTT, so it’s safe for now.

It’s even suggested the development of a “crypto recovery fund.”

Binance claims to hold 1:1 reserve, and many see it as the rock of stability for the crypto industry.

— Genevieve Roch-Decter, CFA (@GRDecter) November 18, 2022

https://twitter.com/GRDecter/status/1593635220573458432