FTX Looks Into Unauthorized Transactions; Report Indicates At Least $1b In Missing Customer Funds – SlashGear

On Friday night, shortly after the company declared bankruptcy, FTX was allegedly hacked, leading to further losses for its customers. According to CoinDesk, “over 600 million dollars” was pulled from customer wallets during the incident, with FTX confirming a hack was taking place over Telegram. Customers were urged to stay off the website, avoid installing any upgrades, and delete the company’s app with a reported account administrator writing, “FTX has been hacked. FTX apps are malware. Delete them. Chat is open. Don’t go on FTX site as it might download Trojans.”

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

Company executive Ryne Miller later tweeted that FTX was moving its assets to “cold storage” following the bankruptcy. That process had accelerated to shield the funds from “unauthorized transactions.” Both FTX and FTX U.S. seem to have been targeted in the hack, while data from the blockchain show large amounts of Ethereum tokens. Solana and Binance Smart Chain were moved from FTX to several decentralized exchanges. Crypto enthusiasts on social media were quick to point the finger at Bankman-Freid and his associates, claiming the simultaneous hacks had the hallmarks of an inside job. Whatever happened last night is likely to be investigated alongside the other ongoing probes into FTX and Bankman-Fried himself.