Over $600 million in cryptocurrency vanished from the wallets of the now-defunct cryptocurrency corporation FTX, for no apparent reason.
Soon after, FTX revealed that it had been hacked in its official Telegram channel and urged users to delete all FTX apps and refrain from installing any new updates.
There has been a breach of FTX. FTX apps contain malware. Remove them. There is a chat window open. The FTX website might download Trojans, advised a chat moderator in the FTX Support channel. Avoid going there. Ryne Miller, FTX’s general counsel, published the
On-chain statistics show that a number of Ethereum tokens, as well as the Solana and Binance Smart Chain tokens, have left FTX’s official wallets and moved to decentralized exchanges like 1inch. Both FTX and FTX US seem to be affected.
Ryne Miller, the general counsel for FTX, tweeted that he was “looking into wallet movement irregularities related to the aggregation of ftx balances across exchanges.”
The transfers take place on the same day that FTX officially requested Chapter 11 bankruptcy protection following the alleged loss of billions of dollars in user payments. The FTX hierarchy has not formally acknowledged the transfers.
Several wallet owners have also reported that the FTX US and FTX.com wallets have $0 balances. In this scenario, the FTX API might not be accessible.
Some of the transactions included crude jokes and insults directed at Sam Bankman-Fried, the founder of FTX.
Members of the cryptocurrency community conjectured on Twitter that an attack had siphoned off the funds.
Others hypothesized that someone in Fried’s inner circle might be in charge of planning the outflows.
All cryptocurrencies’ market capitalization fell to $841 billion, a $201 billion decline in just seven days. Since 130 organizations with which the company was affiliated are also affected by the FTX Bankruptcy action, the risk of industry contagion is at an all-time high.
The previous week was without a doubt the most difficult, unexpected, and devastating in a very long time. After refusing to permit customer withdrawals and citing a multi-billion liquidity hole, one of the biggest cryptocurrency exchanges in the world, FTX, filed for voluntary Chapter 11 bankruptcy with the US.
The exchange has denied access to millions of customers’ bitcoin holdings, and it is still unknown whether or when they will be able to get any of it back.
Many participants, who are in disbelief, predict that things will get worse as the valuation and regulatory contagion spreads. The integrity of the business has taken a serious hit as a result.