The year 2022 has passed, but the pain it left behind is still evident in the crypto market. Large-cap coins in the market, even Bitcoin and Ether, have had terrible days. The following Coincu article will give you an overview of the top characters caused the crypto market crisis in 2022. Some of them are the blatant enemies of the crypto industry, and there are also people who use sophisticated tricks to cause a market crisis after the incident has collapsed.
Do Kwon
The co-founder of Terraform Labs is the first person on this list to be mentioned. Do Kwon exhibits almost all the characteristics of a villain. Do Kwon is unquestionably to blame for the serious harm and suffering that will hamper the cryptocurrency ecosystem for years.
Do Kwon calmly arrives at chosen interviews. The numerous legal threats that have been made against him don’t seem to bother him at all.
Kwon was a prodigy who very immediately rose to fame. He consistently showed that he couldn’t manage fame. Since Terra LUNA crashed, several have taken issue with his comments and tweets. Although Terra’s decline resulted in significant financial losses and, in the worst cases, suicides, Kwon hasn’t displayed much contrition. He asked to leave Crypto forever yet kept trying to bring Terra back, demonstrating that he still craves attention.
Kwon, who is the subject of numerous allegations related to his failing stablecoin TerraUSD, asserts he is unaware of a global arrest order issued in his name and does not think Interpol is genuinely interested in him.
In May, TerraUSD’s peg was broken as affluent investors withdrew their investments. Following a run akin to a bank, sister token luna also crashed, wiping out a combined $60 billion as investors’ faith in the enterprises was lost.
The impact on the industry’s players’ businesses took some time for them to comprehend. As an illustration, the early in August, the Singapore-based cryptocurrency lender Hodlnaut halted withdrawals from its website. But the company didn’t admit for another 10 days that the reason for the high withdrawal rates was TerraUSD’s fall.
Prosecutors in South Korea started looking into Terraform Labs almost immediately and prohibited employees from leaving the country. Kwon, who says he is working with the police, has not provided any information regarding his whereabouts. He is thought to reside in Singapore, although a recent story claimed he was passing via Dubai.
Su Zhu and Kyle Davies
While Su Zhu and Kyle Davies built Three Arrows Capital (3AC) into the most significant crypto hedge fund, they staked everything on price appreciation.
The collapse of the stablecoin TerraUSD and Terra token, which are now known as USTD and LUNC, was the first indication that 3AC was in trouble. Co-founder Davies claims that in February 2022, 3AC invested more than $200 million in LUNA tokens. The company’s investment effectively lost all of its value when the LUNA ecosystem crashed in May.
Su Zhu sat down for an interview in the Bahamas with one shoeless foot tucked beneath his leg, just days before Bitcoin decisively dropped below $40,000 and two months before his hedge fund failed. He was a legendary investor in the ten-year-old bitcoin sector, and his message complemented his easygoing manner.
More than that, Zhu and Davies were an essential element of the intricate web that was the cryptocurrency market. Their fund served as a venture investor and, in some circumstances, corporate treasury manager for some of the most well-known cryptocurrency firms. It was a shareholder in some of the big lenders as well as an aggressive borrower from them. It served as the corporate parent of other startup funds. With a combined following of 610,000 on Twitter, the pair acted as dealmakers and matchmakers.
Taking into account their impeccable market standing. Everyone wanted to collaborate with them and extend a loan to them. Even if it required giving them a loan without any type of security. After Luna/UST reached zero, 3AC declared bankruptcy. But this wasn’t the worst of it. Due to their significance in the sector, they had connections to numerous other market players. This started a domino effect that led to the failure of other enterprises.
Alex Mashinsky
Alex Mashinsky is the creator and former CEO of Celsius Network, one of the largest bitcoin lending systems ever developed.
In a case brought by the New York Attorney General Letitia James, it is alleged that Mashinsky, 57, misrepresented Celsius as a safe alternative to banks while concealing the fact that it was losing hundreds of millions of dollars on risky investments.
In essence, Celsius operated a Ponzi scam, paying out withdrawal requests with funds from new client deposits. They were always insolvent and never turned a profit. If that had been the end, it would have been awful enough.
Mashinsky claims to have developed VoIP, a forerunner of the ride-hailing service Uber, as well as an idea for a cryptocurrency that existed before Bitcoin.
For around 30 years, Alex Mashinsky aggressively pursued whatever cutting-edge technology was popular at the moment, proclaiming revolutions in long-distance telephony, airport transportation, and most recently, cryptocurrency. He frequently left a wake of disgruntled friends, coworkers, and investors.
He provided multiple YouTube interviews in which he asserted that everything at Celsius was working perfectly, even two days before it froze withdrawals. He furthered the notion that banks are unreliable and dishonest. He stood up for the general public. However, it turned out to be a hoax, and they declared bankruptcy while locking billions of dollars in member funds.
Sam Bankman-Fried
This individual on the list is unquestionably essential. The course of Sam Bankman-Fried (SBF) has changed unexpectedly. He was assisted in carrying out the largest fraud of the century at FTX and Alameda Research by SBF and his accomplices.
Bankman-Fried was born in 1992 and spent his childhood close to Stanford University’s Palo Alto campus, where both of his parents were faculty members at the law school. He ended himself at the Massachusetts Institute of Technology, where he majored in math and physics and adopted the movement known as effective altruism, which urges people to give to charity first.
According to the same description, Alameda achieved early trading success by arbitraging cryptocurrency prices on global markets, with half of proceeds going to charity. By 2019, the business had handled $55 million in client spending.
2019 saw the introduction of FTX by Bankman-Fried using Alameda’s earnings. According to an FTX marketing brochure from earlier this year, his goal was to create an “FTX Superapp” that incorporated cryptocurrency trading, betting markets, stock trading, banking, and peer-to-peer and business payments.
The demise of FTX is a lot more intriguing, complex, and significant than the typical massive financial scandal. At its core is a figure that is surprising, untidy, larger-than-life, and ripe for Hollywood dramatization. There is an incredibly quick ascent followed by an almost overnight fall.
There is a ton of money going to politicians, especially Democrats and liberal charities. Eight members of the House are working together across party lines to persuade the Securities and Exchange Commission to cease pressing cryptocurrency companies for more details on their internal finances.
Bankman-Fried appears to be the worst kind of capitalist at the moment, one who is adept at luring and winning over progressives and socialists. He is a living, breathing example of how many influential people are much more easily duped than they will ever admit.
Conclusion
The crypto market has had a challenging year. It is not known whether 2023 will be a fresher year, but the fact that investors are gradually becoming afraid of the risks of this market will affect the game. However, after the events caused by the above characters, it seems that the crypto industry has been purging ugly individuals off the track to make it stronger in the long run like other markets.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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Harold
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