As I write this Sam Bankman-Fried, as soon as a crypto darling and the person answerable for FTX, has been extradited to the US to face costs over the crypto alternate’s collapse. The byword for company scandal in America has for many years now been Enron and, funnily sufficient, the identical lawyer who dealt with that chapter is now answerable for FTX: and says he is “by no means seen such a whole failure“.

Cryptocurrency stays a nascent trade however, now that sure tokens like Bitcoin and Ethereum are well-established, it looks like the broader panorama has change into fraught with little greater than grifters and limitless variants on the traditional “pump n’ dump” rip-off: and this yr, a whole lot of chickens got here house to roost. There’s even a collective noun for the various smaller cryptocurrencies that launch each month within the useless hope of attracting naïve money: shitcoins.

PC Gamer just isn’t a crypto web site however, because the applied sciences proceed to intersect with gaming and the broader PC ecosystem, it feels more and more important to hold a climate eye on what the hell’s occurring over there. I’ll take you thru the issues that hit our radar in 2022, however do not take this as a complete guide to crypto’s 2022, a lot as a selective highlights reel of one of many grimiest, weirdest and most speculative areas of tech.


The yr started with one eyebrow-raising be aware: seems North Korea stole an absolute boatload of crypto in 2021. The US authorities specifically is anxious about this development as a result of cyber warfare usually is among the huge considerations about this regime, and it is going after anybody seen as serving to it, together with jailing a former Ethereum worker who gave a chat there.

The yr would shortly deliver an instance of North Korean capabilities, with the FBI blaming the nation’s ‘Lazarus Group’ of hackers for a $617 million heist on blockchain game Axie Infinity. Later within the yr it will emerge that, whereas this was ongoing, the CEO withdrew funds earlier than the function was disabled for customers.

In February hackers discovered a flaw within the code of cryptocurrency platform Wormhole, and magicked away over $300 million price of consumer crypto.

Crypto hacks do threat seeming a bit summary: a number of million right here, the collapse of some spinoff product you have by no means heard of there. However June introduced a stunning instance of where this will find yourself, because the Costa Rican healthcare system was hacked and held to ransom for $5 million in cryptocurrency, forcing the nation to close down important medical infrastructure.

August noticed an exploit discovered on Solana, which a hacker used to empty $5.2 million out of over 8,000 crypto wallets. At virtually the identical time Nomad, a crypto bridge that was offered on its safety, suffered a “frenzied free-for-all” hack that claimed over $200 million of crypto.

September? Wintermute. A crypto ‘market maker’ that offered liquidity, it received completed for $160 million.


July noticed a primary within the authorities’ strategy to crypto fraud. A former Coinbase worker and associates turned the primary individuals to be charged by the SEC with insider buying and selling in cryptocurrencies: count on to see much more of those instances sooner or later. Because the fits on this case mentioned, “Fraud is fraud is fraud, whether or not it happens on the blockchain or on Wall Road.”

In that regard, it is time to discuss Turkey. Final yr an alternate known as Thorex collapsed, costing buyers $2.5 billion, and founder Faruk Fatih Özer went on the run. In August Albanian police arrested him, Turkish authorities started looking for his extradition, and he will be dealing with costs with a penalty of 40,564 years in jail.

Among the fraudsters stay on the market, for now. Dr. Ruja Ignatova, referred to as the “Lacking Cryptoqueen” since 2017, this yr made the FBI’s Ten Most Wished listing.

TerraUSD founder Do Kwon was the topic of an Interpol crimson discover in September, and is presently believed to be in Serbia by South Korean authorities.

Terraform Labs CEO Do Kwon

(Picture credit score: Woohae Cho/Bloomberg through Getty Pictures)

The crash

Maybe ‘the’ crash is a misnomer, as a result of what 2022 represented for crypto was an ongoing collection of crashes where merchandise beforehand regarded as dependable had been discovered to be not fairly so stable.

All the things actually kicked off in Might with a dive in worth throughout the ecosystem that even affected Bitcoin, and at this level the massive villain was being seen as TerraUSD. This can be a so-called stablecoin, that means that its worth ought to stay persistently pegged to the US greenback, and it turned out to be something however a secure coin: its collapse was so huge that the worry was it may unfold contagion amongst different stablecoins, together with the poster boy for these merchandise, Tether.

July noticed the collapse of the Celsius Community with an astonishing $1.19 billion black gap in the midst of its steadiness sheet.

The knock-on results had been in all places. Crypto-based game Untamed Isles misplaced a lot cash over this era that it principally price the game its funding, and it shut down with out providing refunds, as a result of there was no cash left.

The biggie was, in fact, FTX. This was an unlimited crypto alternate estimated to deal with over $700 billion of trades a yr, and it seems to be like somebody was cooking the books. It collapsed into chapter 11, and former workers now appear to have flipped on CEO Sam Bankman-Fried.

Amusingly sufficient FTX sponsored Riot, amongst many different firms: the League of Legends developer is now doing the whole lot it may to chop ties.

FTX logo

(Picture credit score: NurPhoto (Getty Pictures))

The intense stuff

Joe Biden is not having any of that crypto malarkey: The President says he needs to know much more earlier than committing to one thing like a digital greenback.

Meta aka Fb as soon as had huge plans for cryptocurrency, together with releasing its personal crypto pockets, which this yr it quietly backed away from. Yep, crypto’s too dicey even for the corporate that is betting all of it on the metaverse. You may, no less than, console your self with a GameStop NFT pockets.

When it comes to precise excellent news, one spotlight of the yr was Ethereum lastly moving to a proof-of-stake mannequin: principally, the world’s second-biggest cryptocurrency making itself extra environmentally sustainable. Not a second too quickly both.

Oh, on which be aware: this development has seen large-scale mining outfits unable to pay again crypto lenders. Would not your coronary heart simply bleed?

To 2023 and past

There may be one crypto story of the yr I might like to finish on, although it hasn’t made any headlines. I might at all times been a fan of the now sadly defunct podcast ReplyAll, which in its heyday was a beautiful mixture of bizarre tech tales and investigative deep-dives into the web’s oddest corners. One of many hosts, PJ Voght, left the show and earlier this yr launched a standalone podcast: Crypto Island.

PJ Voght is a good podcaster and the pitch right here was very a lot a curious outsider exploring the world of cryptocurrencies: attempting to work out what substance there truly is beneath all of the buzzwords and hype. The show is known as after a weird venture to determine a crypto commune, advised within the first episode, however Voght then went on to do issues like examine an try to purchase a replica of the US Structure by a crypto collective, attend a crypto convention to speak with attendees, and interview each evangelists and sceptics alike.

One thing attention-grabbing occurred although. Voght started the show as a crypto agnostic. In interviews he’d ask precisely the questions it is best to, however my sense was that he needed to be persuaded: that if solely he received the fitting individual to clarify it, the blockchain and the billions and admittedly the keenness would possibly lastly make sense. It could not simply all be scams, may it?

The show started with a fast flurry of episodes throughout March and April, after which in Might, the Luna collapse occurred. Voght shortly produced an episode, “The lunatic who crashed crypto”, which explored the character of Do Kwon and precisely what lay behind what was all taking place. Then, the podcast had yet another episode on the finish of Might, one in June about an NFT heist, and one in in September where Voght introduced the upcoming finish of the venture.

The ultimate episode, ‘The Finish’, was launched simply earlier than Christmas. It is a barely meandering account of a visit to Greenland that hovers across the environmental impression of crypto however is basically about local weather change (with a somewhat glorious Coolio anecdote en route). International warming is an issue of such existential consequence that on this context crypto, and jawing about proof-of-work versus proof-of-stake fashions, looks like some form of carnival sideshow.

My level just isn’t that somebody began a podcast and received bored of the subject. As a result of I do not assume Voght did get bored. Crypto Island looks like an concept that got here alongside at precisely the flawed time and, because it tried to clarify crypto and make a few of this make sense, the ‘certainties’ of the crypto world started to break down round it. You may really feel Voght virtually getting tenser in the direction of the tip, and a way that possibly the venture had given an excessive amount of credence to crypto, been too fast to imagine or no less than air a number of the bullshit that accumulates round this phenomenon.

Crypto Island’s an ideal pay attention, even when it did peter out. However that in itself summed-up the yr in cryptocurrency for me, one other curious outsider who seems to be on in fascination at this world of gamblers and grifters who declare these merchandise characterize the way forward for international economies. The area stays wrapped in obfuscatory language designed to provide the looks of solidity to pure wind (“mint”, “land”, “token”) and if 2022 confirmed something it is that the frauds should not confined to smaller gamers, however look endemic. The use instances for crypto stay fringe, whereas the merchandise change into tougher to belief with every new collapse.

2022 is a yr where cryptocurrencies and the rising trade round them misplaced a whole lot of credibility, and commenced to look awfully like an area that does not simply want regulation however calls for it. The imaginative and prescient behind Bitcoin, which in the end boils right down to eradicating middlemen and giving people extra management over their cash, feels utterly bastardised. And the saddest factor about all of those tales is that, whereas a number of the villains could finally face justice, the individuals who’ve trusted the jargon and misplaced severe cash to crypto are too quite a few to depend.