Coinbase CFO says full contagion impact of FTX collapse still to show

According to Alesia Haas, chief financial officer of Coinbase Global Inc., the true impact of Sam Bankman-failure Fried's FTX's on the cryptocurrency sector has yet to be revealed.

In an interview with the WSJ, Haas said, "What we are witnessing now is a fallout of FTX that is becoming much more like the 2008 financial catastrophe because it is revealing weak credit practices and is exposing poor risk management."

The complete impact of the incident won't be clear for a few days or weeks, Haas stressed.

In the highest-profile crypto meltdown to date, FTX filed for bankruptcy protection in the US on Friday after traders withdrew billions from the platform in just three days and rival exchange Binance abandoned a rescue plan.

After FTX warned of a "serious liquidity issue," the drop has increased concerns about the viability of the cryptocurrency industry. Since that time, authorities have started looking into the business, and lawmakers have demanded more precise regulations.

According to Haas, there will be a push for regulation both domestically and internationally.

Coinbase recently suffered a second round of staff cuts this year, which many feel would allow them to gain market share as a result of FTX's demise.

As investors sell riskier assets due to rising interest rates and concerns about an economic slowdown, cryptocurrencies are under pressure. Approximately 81% of Coinbase's shares have fallen this year.