Rapid Insights: An Initial Look at The Fallout from FTX's Collapse

On Friday, FTX International filed for Chapter 11 Bankruptcy Protection with CEO Sam Bankman-Fried resigning. This outcome puts an end to a series of events that have transpired over the past week following CoinDesk's report on Alameda Research's balance sheet. Following FTX’s bankruptcy, the crypto ecosystem is already experiencing varying degrees of contagion, with funds and projects that had exposure to FTX facing financial troubles.

In the previous Rapid Insights: Analyzing the Bank Run on FTX, we covered the ongoing outflows of stablecoins and ether, as well as Sam Bankman-Fried’s (SBF) statement on how FTX was doing “fine” despite the heavy outflows. The net outflow over the past 14 days totaled over $3B across Alameda and FTX and FTX saw both its stablecoin and ether reserves nosedive by 99.9%.