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FTX collapse spells more 'crypto winter' pain to come

Temasek to write down entire investment in failed crypto exchange

Investors have shied away from risky, volatile assets like cryptocurrencies this year as central banks back away from easy monetary policies to tame rising inflation.   © Reuters

SINGAPORE/HONG KONG -- Cryptocurrency market players are staring at a prolonged slump for their industry, and for digital coins, as the collapse of the once-mighty virtual token exchange FTX spreads unease across the sector in a year that has already wrecked valuations in the asset class.

Founded by Sam Bankman-Fried, one of the most prominent personalities in the cryptocurrency world, FTX filed for bankruptcy protection in the U.S. last week after it failed to meet a torrent of withdrawals, delivering another shock to the virtual asset sector after similar woes befell other big names, including crypto hedge fund Three Arrows Capital, Celsius Network and Babel Finance.

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