Shares of banks and other financial institutions fell amid fears that instability from the collapse of one cryptocurrency exchange would spread to other major players in the niche.
John Ray III, the new chief executive of crypto exchange FTX, cited a "complete failure of corporate controls" and a "complete absence of trustworthy financial information" in a bankruptcy filing.
"There's never one mouse in the house...I think there's still a contagion risk as the story continues to unfold," said JJ Kinahan, chief executive of IG North America.
The price of bitcoin wallowed around multiyear lows.
Coinbase Global's bonds traded at distressed levels, indicating fears about the exchange's ability to pay debts. Coinbase's chief financial officer warned Wednesday that spillover effects from the crisis of confidence in FTX has yet to be fully realized.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
11-17-22 1704ET
