Crypto Market Downturn Leaves Deep Financial Holes in Trading Firms

A recent market crash has exposed significant financial vulnerabilities in major crypto trading firms, according to Tom Lee, Chairman of BitMine. In an interview with CNBC on Thursday, Lee highlights that the steep decline on October 10th caught many trading companies off guard, leaving them lacking funds needed for daily operations. These companies rely heavily on active traders for income, and when these traders step back during periods of sharp volatility, their market-moving actions become limited, creating further financial strain.