FTX moved users funds to offline wallet early Saturday morning after a wave of unauthorized transactions drained hundreds of millions of dollars from the struggling exchange. Ryne Miller, the general counsel at FTX US, didn't confirm a hack, but said that the company made the move to "mitigate damage" caused by the potential theft, as transferring funds offline or to "cold storage."
The domestic FTX US trading platform, the global version of FTX, and Alameda Research lost millions of dollars after FTX filed for Chapter 11. It is not clear how much is missing from the exchange, but according to a report from Elliptic, it could be over $500 million.
The FTX has been attacked. An admin on FTX's official Telegram channel advised users to uninstall FTX's apps and warned against going on the platform's websites due to the presence of malicious software. The websites FTX.com and FTX.us are down at the moment.
Sam Bankman- Fried, the founder of FTX and Alameda Research, has resigned as CEO but hasn't commented on the matter. Several former FTX employees have confirmed to me that they do not recognize the transfers that are being speculated about.
The quick and catastrophic collapse of FTX was caused by a report from CoinDesk last week. The CEO of the exchange, Changpeng "CZ" Zhao, announced that his exchange would sell off its token, causing the coin's value to plummet. As FTX struggled to make up for the reported $8 billion shortfall caused by the influx of withdrawal requests, Binance offered to buy the firm, but walked back on its plans just one day later.
Bankman-Fried "secretly transferred" $10 billion from FTX to prop up Alameda Research, according to a report. Bankman- Fried denied that the funds were secretly transferred and replied "???" when asked about the missing funds. The founder of FTX was said to have been able to change the company's financial records without the knowledge of other people.
All Rights Reserved © 2024
