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Crypto users removed $8 billion worth of crypto from exchanges last week, according to data form CryptoQuant.
The market has been shaken by the fall of Sam-Bankman Fried’s FTX exchange.
FTX last Friday filed for bankruptcy after failing to secure a rescue from rival exchanges.
FTX’s collapse has set off a crypto bank run over the last week, with panicked users withdrawing over $8 billion from exchanges, according to data from the analytics firm CryptoQuant first reported by Bloomberg.
Users raced to remove $3.7 billion in Bitcoin, $2.5 billion in Ether, and over $2 billion in stablecoins from crypto exchanges around the world last week, the analytics firm said, per Bloomberg’s report on Monday. That amounts to over $8 billion in withdrawals as the crypto industry deals with the collapse of the second largest exchange.
Already, pain has spread to other cryptocurrencies, with the total value of the market falling 12% shortly after news of FTX’s troubles broke.
The exchange, led by Sam Bankman-Fried, was hit by “significant” liquidity issues, leading it to seek a bailout from rival Binance. The rescue ultimately fell apart as Binance CEO Changpeng Zhao said due diligence revealed issues that it could not possibly solve.
That led FTX to declare bankruptcy, halting customer withdrawals, while $2 billion of funds from the exchange was reportedly missing over the weekend.
The downfall of the exchange has led experts to compare it to the collapse of Lehman Brothers in 2008, while others, like former Treasury secretary Larry Summers has compared it to the fall of Enron.