The Fallout from FTX

Over the past few weeks, the world has watched as FTX went from a leading cryptocurrency exchange to a $16 billion bankruptcy. As insiders, media, and consumers are still figuring out what caused the biggest bust in cryptocurrency's short history, we're looking at what such a failure means and the effect it has had on the market.

Many companies have revealed they have funds now stuck in FTX's platform. These numbers range from $2 million to Genesis Trading's $175 million; these firms are now unsecured creditors of the FTX bankruptcy filing. Though we don't yet know what the outcome will be for these parties, according to Yahoo Finance, the affected companies should be prepared for involvement in the fight for how FTX's remaining assets will be divided.

Equity investors stand to lose the most money from the fallout and the ramifications for the smaller crypto-specific investors, such as Paradigm and Multicoin Capital, will be much worse than that of the larger investment companies.

The indirect ripple effects have seen alternative crypto lenders face higher withdrawals and scrutiny, with some pausing transactions altogether, raising alarm bells for customers. According to a recent court filing, FTX have disclosed that $3.1 billion is owed to their top 50 creditors, with the largest creditor being owed $226 million.