Many crypto exchanges have failed in the past, losing client funds and causing many people to lose the money they had on the exchange. Crypto exchanges failing, unfortunately, is not an uncommon event in crypto, but the scale of fraud and mismanagement with FTX is unprecedented. These recent events have caused many in traditional finance to lose faith in the future of crypto, put tremendous downward pressure on crypto prices and lead many to call for further regulation in the crypto markets.
Source: https://www.coindesk.com/business/2022/11/24/self-custody-of-crypto-offers-protection-amid-ftx-exchange-fallout/?utm_medium=referral&utm_source=rss&utm_campaign=headlines