FTX Collapse: What Happens to Your Crypto?

It’s November 2022: Do you know where your cryptocurrency is? After the collapse of the exchange FTX this month, it’s a good time for anyone who owns crypto to take stock of their portfolio.

FTX now faces reports that it used customer funds on risky investments that left the crypto exchange in a deep hole. The company halted withdrawals amid the chaos (it later resumed them) and is now entering bankruptcy proceedings that could raise new questions about the status of clients’ assets.

If you’re directly affected by the FTX implosion, you can take several steps to check in on your digital assets. And even if you’re a cryptocurrency owner with no relationship to FTX, the issues raised by the latest turmoil may help you think more clearly about your risk appetite.

Because crypto is regulated by a patchwork of agencies in the United States, investors don’t always have the fallbacks available through traditional financial institutions. These include Federal Deposit Insurance…

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This article was written by Andy Rosen and originally published on www.nerdwallet.com