9 Companies That Hoarded Customers’ Money as Crypto Crashed

Traders work on the floor of the New York Stock Exchange (NYSE) on May 5, 2015 in New York City.

Traders work on the floor of the New York Stock Exchange (NYSE) on May 5, 2015 in New York City.
Photo: Spencer Platt (Getty Images)

There’s no getting around it, June was a disastrous month for cryptocurrency.

Though cryptocurrency prices have trended down for the better part of 2022, investors truly had the rug pulled out from under them in the past two months. With bitcoin prices in particular plummeting to values ​​not seen since 2020, exchanges and lenders were forced to do something few expected. One after another, firms halted or severely limited withdrawals, leaving investors uncertain whether they would ever see their real life money again.

Though some of these firms have since resumed withdrawals, others have only offered notes of optimism without tangible promises. There’s reason to believe the worst may still lie ahead. In an interview with Forbes earlier this week, Sam Bankman-Fried, the founder of the massive crypto exchange FTX, said he was pouring hundreds of millions of dollars into struggling exchanges to keep them afloat, but added there are others who he believes are already “secretly insolvent . ”

“There are companies that are basically too far gone and it’s not practical to backstop them,” Bankman-Fried said.

Here are a handful of the crypto and exchanges and investment firms who’ve already had to reckon with withdrawing freezes.

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