The collapse of FTX is impacting the entire cryptocurrency industry at a visibly rapid pace. An $8 billion black hole in funds, over 100 related companies affected, and a complete freeze on advertising and endorsement collaborations—this storm's scale has far exceeded that of the Luna and Three Arrows Capital incidents.

It’s important to note that FTX was once one of the largest exchanges in the world, with users across key markets such as Asia and the United States. Its sudden collapse is somewhat reminiscent of the 2014 Mt. Gox exchange failure, but this time is different—the crypto industry has become a truly global industry, and the ripple effects have intensified accordingly. Even the Democratic Party in the U.S. has lost one of its major financial backers, illustrating the profound impact.

What’s even more heartbreaking is that this incident has alarmed regulatory authorities worldwide. The U.S. government is already taking action—The White House, SEC, and CFTC are all moving. The Biden administration has publicly stated that they are closely monitoring the situation, emphasizing that unregulated cryptocurrencies can harm ordinary people and that regulations must be strengthened. From the government to Congress, from financial regulators to law enforcement agencies, everyone is rushing to make statements.

A severe regulatory storm targeting the crypto industry has become an unavoidable reality.