Per FT:

The $1 trillion digital asset market faces a crisis akin to the 2008 financial crash, according to Binance chief Changpeng Zhao, who warned more companies might fail in the coming weeks following the troubles at FTX.

Zhao, founder of the world’s biggest digital asset exchange, said the full impact of the meltdown at rival crypto exchange FTX had yet to be felt. Speaking at a conference in Indonesia, he said the global financial crisis was “probably an accurate analogy” to this week’s events.

“With FTX going down, we will see cascading effects,” Zhao said. “Especially for those close to the FTX ecosystem, they will be negatively affected.”

The comments come as crypto traders fear further waves of contagion after a bid by Zhao to buy out FTX earlier this week fell apart, leaving one of the most prominent cryptocurrency exchanges teetering on the brink of collapse. Its failure would also deal a blow to blue-chip investors that had scooped up equity in the group, including venture capital company Sequoia and Japan’s SoftBank.

Bitcoin, the largest cryptocurrency, has shed 17 per cent over the past five days, touching a two-year low in the midst of tumultuous negotiations between Binance and FTX chief executive Sam Bankman-Fried.