No end for FTX’s troubles, crypto exchange claims it has been hacked, $600 million ‘transferred’
As per reports, the cryptocurrency exchange FTX, which has lately made headlines for its troubles has now been hacked and more than $600 million in crypto has been “transferred”.
The “transfers” occur on the same day that FTX formally filed for Chapter 11 bankruptcy protection after losing allegedly billions of dollars in user payments. The transfers have not been officially acknowledged by FTX leadership.
Watch | Binance walks away from FTX deal due to ‘mishandled funds’
According to Coindesk, the incident happened on Wednesday. Although there isn’t much information available about what happened, the company announced that it had been hacked on its Telegram channel and advised customers to avoid installing any new updates and delete any FTX apps in addition.
“FTX has been hacked. FTX apps are malware. Delete them. Chat is open. Don’t go on FTX site as it might download Trojans,” said a forum administrator in the FTX Support channel.
Also read | Crypto collapse: ‘Gold standard’ FTX files for bankruptcy, CEO resigns
The message was then reportedly pinned by FTX General Counsel Ryne Miller.
Miller had earlier tweeted that he was “investigating abnormalities with wallet movements related to consolidation of ftx balances across exchanges.”
Investigating abnormalities with wallet movements related to consolidation of ftx balances across exchanges – unclear facts as other movements not clear. Will share more info as soon as we have it. @FTX_Official
— Ryne Miller (@_Ryne_Miller) November 12, 2022
In another tweet on Saturday, Miller said that the exchange was hastening the move of all digital assets into cold storage “to mitigate damage upon observing unauthorised transactions.”
Following the Chapter 11 bankruptcy filings – FTX US and FTX [dot] com initiated precautionary steps to move all digital assets to cold storage. Process was expedited this evening – to mitigate damage upon observing unauthorized transactions.
— Ryne Miller (@_Ryne_Miller) November 12, 2022
Also read | Crypto-exchange FTX’s troubles far from over over; top US finance watchdogs probe its costumer assets handling
Cryptocurrency wallets that are not online are referred to as being in “cold storage”, these are used to stave off hackers.
As per a Reuters report quoting data from Singapore-based analytics firm Nansen, there was a one-day net outflow of about $266 million, with $73 million withdrawn from FTX US alone.
(With inputs from agencies)
WATCH WION LIVE HERE
You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.
For all the latest business News Click Here
