FTX confirms hacked after bankruptcy

Cryptocurrency exchange FTX has confirmed that it has detected unauthorized money transfers 24 hours after the company officially declared bankruptcy. Ryan Miller, Chief Legal Officer of FTX, tweeted: confirmed that suspicious access to certain assets has been detected on the platform. On November 12, Telegram channel of FTX reported about hacking of the platform. The message says so “FTX is hacked, FTX apps are malware, remove them. The conversation remains open. Do not go to the official FTX website, which may contain Trojans [logiciels malveillants] ».

Observers analyzed blockchains and discovered suspicious money transfers from FTX wallets. Elliptic, a company specializing in the analysis of the movement of cryptocurrency funds, thus recalls in a blog post published on Saturday that $663 million worth of cryptocurrency was transferred from wallets managed by FTX to several other non-stock wallets. exchange, Thursday. Whether some of these transfers are considered legitimatemade as part of the company’s restructuring, others are more dubious: Elliptic estimates the amount of funds stolen from FTX at $477 million.

John J Ray III, the company’s new chairman and CEO, appointed after the resignation of founder Sam Bankman-Fried, said FTX teams were still analyzing the facts and contacting regulators and law enforcement. In turn, the Kraken exchange explains that the perpetrators of the hack used their Kraken account to pay the fees associated with one of the fraudulent transfers and provides identification of the person responsible for this transfer without revealing their identity. On Twitter, the leader of the platform announced that he had reported this information to the police and a “Insider trading by a novice within FTX”.

Flash bankruptcy

FTX went spectacularly bankrupt within a week. The company, valued at about $32 billion, collapsed after the US media revealed that the company’s founder, Sam Bankman-Fried, used billions of FTX users’ deposits to finance his crypto-finance company, Alameda, Bahamas. according to The Wall Street Journal, Alameda, which took extremely risky financial bets, owes FTX $10 billion. According to Reuters, at least $1 billion in customer deposits has disappeared. FTX filed for bankruptcy on November 11.

Also read: The article is reserved for our subscribers FTX, the bankruptcy that rocked cryptocurrencies

There is great confusion about the amount of remaining funds and their availability. Late last week, FTX announced that it was re-opening its withdrawal operations only to its customers resident in the Bahamas, following orders from the local regulator. On Sunday, the same regulator refused to order such an event. Several financial regulators, including the powerful US Securities and Exchange Commission, have opened investigations into FTX’s bankruptcy.

On Sunday, Binance and Huobi, two of the leading platforms specializing in the trading and exchange of cryptocurrencies, suspended deposits of FTT tokens, tokens created by FTX, whose price collapsed last week, losing more than 90% of its value. FTX regularly created new tokens, but earlier in the day 192 million tokens were created without notice and outside of the regular schedule, suggesting manipulation. AAX, another major exchange in Hong Kong, suspended withdrawals for ten days, saying it had nothing to do with FTX but wanted to avoid any risk of fraud.

On Monday, November 14, Changpeng Zhao, CEO of the number one exchange Binance, announced launch a “Support Fund” intended for “Help strong but cash-strapped projects”. Mr. Zhao has yet to provide any details about the project; The collapse of FTX led to sharp declines in the price of almost all cryptocurrencies before a slight rally earlier in the week.

The personal situation of key FTX leaders is also the subject of intense speculation. Over the weekend, the specialized press reported that some of the company’s executives tried to escape to Hong Kong or Dubai, countries that do not have an extradition treaty with the United States.

Also read: FTX: One of the biggest cryptocurrency platforms, Binance, has given up trying to save its sinking rival

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