A recent report by the Bank of International Settlements (BIS) revealed that the crypto industry lost over $650 billion after two major scandals that rocked the market last year.

The report titled “Crypto Shocks and Retail Losses” explained investors’ trading behavior during and after the scandals, their profits and losses, and the effects of the crypto market turmoil in the broader financial system.

Retail Investors Bought the Dip

Last year, the crypto space saw a lot of horrible incidents that forced several firms into bankruptcy, with over $1.8 billion wiped from the market in the aftermath.

One such event is the $40 billion Terra-Luna ecosystem collapse in May. According to the BIS, over $450 billion vanished from the market after the crash.

About six months later, the world’s third-largest crypto exchange FTX collapsed, removing over $200 billion from the market.