FTX is investigating a possible $473 million hack

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Cryptocurrency exchange FTX, which filed for bankruptcy on Friday, is investigating whether crypto assets have been stolen and has moved all of its digital assets offline, the company announced on Saturday. The assets could be worth more than $400 million, crypto risk management firm Elliptic said.

in one tweet early Saturday, FTX General Counsel Ryne Miller said the company has taken “precautionary steps” and moved all of its digital assets to cold storage, meaning the crypto wallet is no longer connected to the internet. This follows Friday’s announcement that the exchange filed for Chapter 11 bankruptcy.

Elliptic said while the theft is unconfirmed, $473 million in crypto assets were reportedly stolen from FTX.

That The process was “sped up” Friday night “to mitigate the damage of observing unauthorized transactions.” Miller said in a tweet.

Miller tweeted late Friday that FTX is investigating “anomalies” in terms of wallet movements “related to FTX’s consolidation.” Balances between exchanges.” The facts are still unclear and the company will share more information as soon as possible, he added.

The stablecoins and other missing tokens are quickly being converted to ether, the second largest cryptocurrency after bitcoin, on decentralized exchanges. said Elliptic. Elliptic said it’s a common technique used by hackers to avoid having their funds confiscated.

FTX, one of the most powerful players in the crypto industry until last week, is experiencing a rapid collapse. Founder and CEO Sam Bankman-Fried, 30, has resigned, losing his $16 billion fortune in less than a week.

In its bankruptcy filing, FTX said it has estimated liabilities and assets of between $10 billion and $50 billion.

“Again, I’m really sorry we ended up here,” Bankman-Fried wrote in one Twitter thread Friday. “Hopefully things will find a way to recover.”

As crypto exchanges come under increasing scrutiny, Singapore-based crypto.com admitted to accidentally transferring more than $400 million in Ethereum to the wrong account. Its CEO, Kris Marszalek, said on Twitter The transfer of 320,000 ETH was made three weeks ago to a corporate account on rival exchange Gate.io rather than one of their offline or “cold” wallets.

And although funds have been reclaimed, users are withdrawing from the platform, fearing the same outcome as FTX. Binance CEO Changpeng Zhao issued a warning on Twitter said, “If an exchange needs to move large amounts of crypto before or after they show their wallet addresses, that’s a clear sign of trouble.”

“Since then, we have improved our processes and systems to better manage these internal transfers,” says Marszalek tweeted Sunday.

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