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Hedge funds and other distressed investors rejoiced last month when bankruptcy managers said the corporate carcass of FTX, Sam Bankman-Fried’s collapsed The exchange's founder Sam Bankman-Fried secretly transferred $10 billion of customer funds from FTX to Bankman-Fried's trading company Alameda Research, the LONDON (Reuters) - Hedge funds trading crypto currencies tracked by index provider BarclayHedge ended 2025 down almost 50%, the research firm said on According to data from Arkham Intelligence, the value of FTX’s asset reserves in its public Ethereum wallets fell from over US$8.4 billion a few days prior to the While the exact sequence of events leading up to the collapse of FTX and Alameda is unknown, the sheer size of the asset gap – USD 10bn– narrows the possibilities to either blatant

Data Reveals FTX Ripples Caused Hedge Funds to End 2022 Down by 50%

The catastrophic collapse of FTX continues to send shockwaves through the financial world. New data reveals the extent of the damage, showing that hedge funds with crypto exposure suffered significant losses in 2022. According to data from Arkham Intelligence, the value of FTX’s asset reserves in its public Ethereum wallets fell from over US$8.4 billion a few days prior to the exchange's demise. This dramatic plunge, coupled with other factors, led to a devastating year for many.

LONDON (Reuters) - Hedge funds trading crypto currencies tracked by index provider BarclayHedge ended 2022 down almost 50%, the research firm said on. This staggering statistic underscores the interconnectedness of the crypto market and the vulnerability of even sophisticated investors to events like the FTX implosion.

The fall of FTX, precipitated by revelations of financial mismanagement and alleged fraud, exposed significant vulnerabilities within the crypto ecosystem. The exchange's founder Sam Bankman-Fried secretly transferred $10 billion of customer funds from FTX to Bankman-Fried's trading company Alameda Research. While the exact sequence of events leading up to the collapse of FTX and Alameda is unknown, the sheer size of the asset gap – USD 10bn – narrows the possibilities to either blatant theft or gross mismanagement.

While the losses are substantial, some investors are seeing an opportunity. Hedge funds and other distressed investors rejoiced last month when bankruptcy managers said the corporate carcass of FTX, Sam Bankman-Fried’s collapsed exchange, could yield recoveries for creditors. However, the road to recovery will be long and complex, and the full extent of the damage caused by FTX remains to be seen.

This data highlights the importance of due diligence and risk management in the volatile crypto market. Investors must carefully evaluate the risks associated with digital assets and understand the potential for unexpected market events to impact their portfolios.

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