Regulatory Risks of Cryptocurrencies: Lessons from Celsius and FTX

In 2022, the collapse of Celsius Network and FTX caused $4.7 billion in assets to be frozen, and CEOs Alex Mashinsky and Sam Bankman-Fried were subsequently sentenced to jail, triggering significant regulatory reforms. These reforms include 784 enforcement actions taken by the Securities and Exchange Commission (SEC) in 2023, Canada's asset quarantine rules, and the U.S. stablecoin reserve proposal. Despite the initial market volatility, by July 2025, the price of Bitcoin soared to $120,000, and the adoption rate of institutional investors has also been growing through approved Bitcoin ETFs. In the ongoing market transformation, investors are now prioritizing regulatory compliance and diversified investment.