Federal Reserve Bank of Chicago (FRBC) has released a new report that identifies key factors and catalysts that contributed to the 2022 crypto bank runs. The report highlights that the liquidity crisis, which led to the bank run, was caused by withdrawals made by crypto whales and large account holders on centralized exchanges, including some key institutional accounts. The first crisis came from the Terra collapse, which triggered customer outflows for many crypto lenders with exposure to the Terra ecosystem. Celsius and Voyager Digital saw outflows of 20% and 14% of their customer funds, respectively, in the 11 days after the collapse. The second major crisis was catalyzed by high customer outflows, which came from Three Arrows Capital’s (3AC) downfall in July 2022. Genesis Capital, BlockFi, Voyager Digital, and Celsius had lent billions in crypto assets to the hedge fund, resulting in a major crisis after its failure. The third major crisis came from the FTX collapse in November 2022. The report highlights that although most of these failed crypto platforms had a significant retail customer base, institutional client withdrawals led to a major crisis. The research report observed that crypto lending firms offering high yields through risky investments were the real culprit. Unlike banks, these lending platforms offered no security or insurance against such failures, and as a result, customers panicked during the downturn in the market.