John Ray, FTX's new CEO and chief restructuring officer, said in a statement that the exchange is in the process of removing trading and withdrawal functions and is moving as many digital assets as possible to a new cold wallet custodian.
The failed exchange is investigating unauthorized transactions that began after FTX filed for Chapter 11 in the US.
The suspected hack was announced by an admin in FTX's Telegram Channel and followed by a message from Miller indicating that the wallet movements were abnormal.
Over the past seven days, more than $2 billion in net outflows from the FTX global exchange and its U.S. arm have been reported.
According to Elliptic, $663 million was taken from FTX's wallet. The $477 million that was taken in the suspected theft was moved into secure storage by FTX.
According to Elliptic, stable coins are being rapidly converted to ether and dai in order to prevent them from being seized.
Tom Robinson, Elliptic's chief scientist, said that the way the assets have been moved is suspicious.
The new FTX chief said that it was working with law enforcement and regulators to make sure that all assets are secured.
Miller said the decision to put digital assets into cold storage was meant to protect them from unauthorized transactions.
People who hold their own currency can keep it in a variety of ways. A hot wallet is connected to the internet and allows owners relatively easy access to their coins so that they can spend their money, whereas cold storage is a type of storage where the private keys are not connected to the internet. There is a tradeoff for convenience with hot storage.
CNBC contributed to this report.
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