Crypto markets have come under intense pressure this year, as rising interest rates prompt investors to ditch risky or speculative assets. In the case of FTX, U.S. residents can't trade on its global platform due to strict regulations for the crypto space in the United States. Ken Lo, co-founder at Hong Kong-based crypto exchange and custodian Hong Kong Digital Asset Exchange, said counterparty risk, which comes from a lack of transparency and information disclosure, underscores the need for "clear regulatory framework and vision statement." In an interview with Reuters in July, Bankman-Fried said his company still had a "few billion" on hand to shore up struggling firms that could further destabilize the digital asset industry. Max Boonen, co-founder of digital asset liquidity provider B2C2, said FTX's problems have set the crypto space back by six months.

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