Update (0915ET):
A post in FTX’s Telegram channel called the unauthorized transactions a “hack,” according to WSJ.
NEW: FTX said in a statement in its official Telegram channel that it had been hacked, instructing users to delete all FTX apps and don’t access the company’s website
— Bitcoin Magazine (@BitcoinMagazine) November 12, 2022
Tom Robinson, the co-founder of blockchain analysis company Ellipticm, said at least $473 million in crypto appeared to be taken from FTX. He said the tokens were converted to ether.
***
Another day, another plot twist in the FTX bankruptcy saga.
FTX — which was clearly insolvent after the biggest fraud in crypto history — filed for bankruptcy on Friday. The official Twitter account of FTX retweeted Ryne Miller, the company’s US general counsel, who warned late Friday:
“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.”
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
Miller then tweeted:
“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.
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
Then another twist emerged when an administrator on the Telegram support group for FTX stated:
“FTX has been hacked . . . Don’t go on FTX site as it might download Trojans.”
“With all eyes on FTX, the late-night fund transfers on a Friday night raised questions about the company’s intent. While some blockchain investigators saw it as the start of the bankruptcy process, speculations around ill-intent or an external hack surfaced across the crypto ecosystem,” Cointelegraph explained.
If you’re wondering WTF happened overnight…
• $600m left FTXs wallet
• FTX’s telegram said it was a hack
• The Site/App are infected
• Blackhat theft at ~450m
• FTX rescued ~200m
• soBTC on Solana has lost peg (-77%)
• and more.Hacker or inside job? 🤔
— Edgy – The DeFi Edge 🗡️ (@thedefiedge) November 12, 2022
Fraud running rampant.
Millions of funds are currently flowing off of FTX. https://t.co/z9aZYRvCds
— Dylan LeClair 🟠 (@DylanLeClair_) November 12, 2022
SBF literally just hacked the remaining assets at FTX. Guarantee it’s him. He’s done this before (see my previous tweet).
The fact he has not been arrested already shows negligence of @DOJPH & @SECGov. Do your FREAKING job.
— Ben Armstrong (@Bitboy_Crypto) November 12, 2022
🚨MASSIVE REVELATION
“The hack seems to be internal” – Alameda security auditor live on the spaceThe ‘mango hack’ was funded by an FTX wallet. Auditor brought the issue up to FTX and were ghosted.
👇
— Mario Nawfal (@MarioNawfal) November 12, 2022
JUST IN: SBF had a “backdoor” built into FTX’s accounting system, allowing him to alter the company’s financials without alerting executives and auditors – Reuters
— Bitcoin Magazine (@BitcoinMagazine) November 12, 2022
FTX founder Sam Bankman-Fried resigned yesterday and was replaced by John J. Ray, III – the lawyer who helped clean up Enron – as incoming CEO.
SBF’s crypto empire collapse resulted in Bloomberg’s Billionaire Index downgrading his net wealth from $15.6 billion on Nov. 4 to zero by Friday.
Many on Twitter speculate SBF jumped on a private jet to Argentina.
The plane CT thinks is transporting SBF is now over Argentina
(LVKEB is you want to follow on flightradar) pic.twitter.com/tdyiDtDHZ9
— Ivan on Tech 🇺🇦🥑 – Building Moralis Web3 (@IvanOnTech) November 12, 2022
Ok SBF is definitely on the run now. I need a bounty hunter to take me to him… it’s the only correct way the movie can end.
— Ben Armstrong (@Bitboy_Crypto) November 12, 2022
It remains unclear if the late-night fund transfers, totaling more than $600 million, according to CoinDesk, are part of the bankruptcy process or something more sinister, such as a hack.
Reuters spoke with two people familiar with the matter who said upwards of $1 billion of customer funds have vanished from FTX.
CoinDesk said, “Many FTX wallet holders are also reporting that they are seeing $0 balances in their FTX.com and FTX US wallets.”
Hmmm…
This tracks.#FTX #FTXbankruptcy #ftxwithdrawal #ftxhack pic.twitter.com/bjgl3XvZxk
— Jypto | Crypt3d Punk (@JyptoCrunky) November 12, 2022
Tyler Durden
Sat, 11/12/2022 – 08:10
