In the hours after the FTX exchange filed for Chapter 11 reorganization, opportunist hackers took advantage of the chaos and stole hundreds of millions of dollars worth of digital currency.
They're working hard to make it look like it's not real. John Ray III, the exchange's new CEO, admitted that unauthorized access to certain assets had occurred when the company filed for Chapter 11 protection. Elliptic believed that $447 million had been stolen during the commotion.
FTX users were warned of the potential for a crash once it became clear that the exchange had been penetrated, and as the financial broadcaster notes, those fears were confirmed once it became apparent that the exchange had been penetrated.
The majority of the stolen money was converted to ether. Tom Robinson, co- founder of Elliptic, tells CNBC that ether is being converted to Bitcoin via a "bridge" currency that is used in the laundering ofcryptocurrencies. Over $65 million has been laundered into the digital currency.
Sam Bankman- Fried, the disgraced founder of FTX, had some ideas about who was behind the hack that brought the company down.
Bankman-Fried seemed to implicate an unnamed and disgruntled "ex-employee" in a direct message conversation with a reporter that took place in the days after the exchange crashed.
CNBC suggests that the discovery of a bunch of transfers from a computer in the Bahamas, where SBF, his sometimes-girlfriend, and at least eight other people lived, gave some credibility to the theory.
It's easy to forget about the financial aspect of the saga when there's so much messiness surrounding it. Lots of investors were hurt by the crash of FTX because they were sold the idea that SBF was going to save the industry.
It's obvious that FTX's reputation was all smoke and mirrors. It looks like dust is finally starting to settle.
Sam Bankman- Fried's lawyers quit because of his "incessant and disruptive" social media use.
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