Cryptocurrency prices have plummeted in the ongoing crisis triggered by the fall of Sam Bankman-Fried’s once mighty FTX empire.

The biggest Bitcoin token lost as much as 4.7% to $15,485 on Monday, the least since November 2020. Second-tier Ether is around 5% lower. The Meme Dogecoin token — a gauge of the most speculative sentiment in an already racy digital playground — is down around 12% in the past two days.

Administrators dig into the wreckage of FTX’s bankruptcy, finding that $3.1 billion is owed to major creditors. The scale of the money stock is fueling fears that more digital asset rigs could collapse.

Digital asset brokerage Genesis is struggling to raise fresh funds for its lending unit, and it is warning potential investors that it may have to file for bankruptcy if its efforts fail, according to people with knowledge of the matter.

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Crypto lender Genesis says it has no plans to file for imminent bankruptcy

Recently, Genesis Global Capital suspended client redemptions in its lending business, citing the sudden failure of Sam Bankman-Fried’s FTX crypto exchange

Genesis, which faced a liquidity crunch following the bankruptcy filing of crypto exchange FTX this month, spent several days seeking at least $1 billion in fresh capital, the people said. . This included talks of a potential investment from crypto exchange Binance, they said, but funding has not materialized so far.

Crypto lender BlockFi Inc. could be next: people with knowledge of the matter said last week that it was preparing to file for bankruptcy in a few days.

“The FTX issues are really an urgent reminder of the need for regulatory clarity and a real regulatory framework for crypto,” Christian Catalini, founder of the MIT Cryptoeconomics Lab, said on Bloomberg TV.

He added that the hype and speculation about token minting and trading “has generated massive distraction from creating real products and services that reach consumers, solve real problems.”

FTX, Ether

Ether has underperformed Bitcoin over the past two sessions, partly amid speculation that some of the $663 million drained from FTX as it slid to bankruptcy is now being transferred out of the token.

The person or entity that attacked FTX emerged last week as one of the largest Ether holders in the world, with a gain of around $288 million.

Blockchain specialist Chainalysis said in tweets on Sunday that funds taken from FTX “are in motion” and some are being moved from Ether to Bitcoin, likely as part of an effort to “cash out.”

The heady mix of corporate failure and potential criminality atop a 72% drop in a top 100 token gauge over the past year naturally leads to all sorts of questions about the future – or its absence – for digital assets and their underlying blockchain technology.

Pershing Square Capital Management founder Bill Ackman said on Twitter that crypto represents less than 2% of his assets while adding that he remains positive on the sector as a whole, comparing its potential social impact to the phone and to Internet.

Crypto “enthusiasts”

Bitcoin was trading at around $15,638 as of 2:40 p.m. in New York, a far cry from its November 2021 high of nearly $69,000. It hit a two-year low of $15,574 on November 9. Ether was hovering around $1,082.

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“We need to get past this early stage of crypto enthusiasts,” Bobby Lee, founder of crypto storage solutions provider Ballet Global Inc., told Bloomberg Television. He added that Bitcoin could drop as low as $10,000 if the crypto markets were hit by larger blowouts.