It is hard to ascertain how many people have lost money due to the FTX collapse. However, data suggests that a lot of them are based in Asia.
FTX International served clients outside of the United States. One of its largest customer bases was Taiwan, and the number of victims there is staggering.
According to Chinese industry outlet Wu Blockchain, the number of Taiwanese victims could be greater than that from the Lehman Brothers collapse.
On Nov. 17, Colin Wu published an interview with Enlighten Law Group revealing the extent of the damage:
More Taiwanese FTX victims than Lehman Brothers
The law firm stated that it currently represents 950 people in Taiwan. Furthermore, this is just one firm, so the actual figure is much higher.
It stated that at the time of Lehman’s bankruptcy in September 2008, the total number of victims in Taiwan was over 50,000. The total amount lost was more than $2 billion. The bankruptcy of Lehman Brothers was the climax of the subprime mortgage crisis.
However, when referring to the collapse of FTX, the firm stated:
“We suspect the number of victims in Taiwan may be even higher this time.”
It also revealed that 90% of the victims are individuals or retail investors. Four of its clients have lost more than $5 million in the aftermath.
The legal firm said that it took three years to recover 30% of the funds from the Lehman collapse. It expects a similar time frame and recovery amount for FTX victims.
FTX appealed to Taiwanese traders because it was not Chinese-owned. Many remain concerned about personal privacy and data leakage from Chinese exchanges and state-controlled entities.
Moreover, the Taiwanese were not the only Asian victims as South Koreans and Singaporeans also suffered heavy losses. In late August, the second-largest city in South Korea, Busan, partnered with FTX to build a new exchange.
Singapore suffering as well
Asia’s leading crypto hub Singapore has also been battered in the fallout of the FTX collapse. According to the Straits Times, as many as 5% of all FTX victims resided in Singapore.
According to reports, FTX had a Singapore entity called Quoine. This had the central bank’s permission to take on local customers pending a review of its license application.
A spokesperson for the Monetary Authority of Singapore said FTX and Quoine operated as separate legal entities. As a result, those that lost money did through FTX.
The extent of the financial damage caused by SBF and FTX is still unclear. However, a large swathe of it has impacted Asia more so than other regions.
BeInCrypto has reached out to company or individual involved in the story to get an official statement about the recent developments, but it has yet to hear back.