Authorities are looking into a possible $477 million theft at FTX

Things are going from bad to worse for bankrupt crypto exchange FTX, with officials confirming that unauthorized transactions drained millions of remaining user funds from wallets over the weekend.

FTX, authorities investigate potential US$477 mln theft

John Ray, the new FTX Chief Restructuring Officer, and CEO confirmed on Sunday that “unauthorized access” to certain assets had occurred following reports of suspicious activity on the platform. However, FTX officials have not specified the number of assets missing, blockchain analysis firm Elliptic estimated that $477 million was lost in the suspected theft.


The theft could be another hit to investors with funds stuck in the illiquid exchange. An FTX.com balance sheet shared with investors a day before its bankruptcy showed $9 billion in liabilities and only $900 million in liquid assets.

After filing for Chapter 11 bankruptcy on Friday, FTX wallets were being drained to be moved to cold storage. This process was expedited “to mitigate damage upon observing unauthorized transactions,” General Counsel at FTX US Ryne Miller said in a tweet Saturday. The exchange is “the process of removing trading and withdrawal functionality and moving as many digital assets as can be identified to a new cold wallet custodian,” said FTX CEO Ray.


In response to the incident, the company will ” coordinate with law enforcement and relevant regulators,” Ray added.

Read more:

Join us on Telegram

Follow us on Twitter

Follow us on Facebook

You might also like

LATEST NEWS

LASTEST NEWS