Massive Crypto Crash Crushes Altcoins, "Armageddon" for Traders

Crypto’s Biggest Crash Reveals a Market Littered With Pitfalls

The spark was familiar but unexpected. Donald Trump’s 100% tariff threat on Chinese imports rattled global markets bloated with speculative excess. But the pain was most acute in crypto, with an index tracking altcoins — the smaller tokens beyond Bitcoin and Ether that rely on fragile liquidity and speculative zeal – dropping as much as 40% within minutes.

While the crash was brief and prices have since partially recovered, critics point to underlying issues in the crypto market’s structure that makes it prone to violent selloffs. From a chronic lack of liquidity during weekend trading and excessive leverage to how major exchanges handle and report liquidations, these problems continue to dog a sector that’s gained increased mass-market appeal since Trump returned to power.

First Brands Boss Resigns and Jefferies Seeks to Calm Its Investors

Patrick James, the chief executive of bankrupt auto-parts supplier First Brands, has resigned and will be succeeded by one of the company’s restructuring advisers.

First Brands filed for bankruptcy in late September with more than $10 billion in debt. New directors have said they are investigating accounting irregularities tied to its complex financing arrangements.

James led the company through a rapid expansion in recent years and used debt to accumulate 25 auto-parts brands. James was the company’s founder and sole equity owner. “

Patrick James has resigned from his role as chief executive officer,” a spokesman said. “Mr. James has always prioritized the company’s interests above his own.”

He will be succeeded as interim CEO by Charles Moore, an executive at advisory firm Alvarez and Marsal, who took over as chief restructuring officer when First Brands entered bankruptcy protection.

Big Law Looks to Cash In on Crypto Push

As the cryptocurrency markets grow, so does the industry’s demand for sophisticated legal counsel. Many Big Law firms are looking to cash in on the rush, finding that the crypto industry can boost nearly every practice, from M&A deals and IPOs to regulatory and litigation work.

And in the age of President Donald Trump, the market appears to be flourishing more than ever. As of October 2025, the market is valued at over $4 trillion, according to industry assessments.