As hundreds of millions of dollars were skimmed off the cryptocurrency exchange hours after Sam Bankman-Fried filed for bankruptcy, the collapse of FTX, is already one of the most spectacular financial disasters in history,

Around 7:30 UTC, Ryne Miller, general counsel for FTX US, confirmed "unauthorized transactions" from the group's wallets to addresses not under FTX's control.

Late  Friday, more than $600 million was stolen from FTX's cryptocurrency wallets. Soon after they announced that it had been compromised in its official Telegram channel and advised users not to install any new updates and to remove all FTX apps.

Have the creditors of FTX lost what little money they still had?

Yesterday, in an effort to protect itself from its creditors, FTX filed for Chapter 11 bankruptcy. These creditors are now concerned that at least a portion of their funds won't be available to pay out claims.

Members of the cryptocurrency community on Twitter instantly started speculating about the outflows.

Any scenario is feasible given the chaos at FTX. This is in accordance with rumors that young workers were trying to sell some of FTX's troubled assets on their own, according to reports by Bloomberg.

One redditor posited the following:

"This was almost certainly an inside job, as FTX and FTX US are two seperate corporate entities. It is impossible that a hacker would have access to both of their servers, keys, and backups. The FTX com site (not adding link for fat fingers) will download trojans and decrypt private keys from hot wallets."

The two main draining addresses have been identified. As much as $383 million in crypto may have been stolen:

Main draining address:

Shitcoin draining address:

The outflows were at least $266 million, according to a tweet from the research firm Nansen for crypto analytics:

According to The Australian Financial Review, the lost money totaled $600 million and was made up of a combination of Ethereum, Solana, BNB LINK, AVAX, and MATIC.

Has the FTX app and website been compromised too?

Although the website was still accessible, FTX's login interface was down at midnight Eastern time, resulting in a 503 error for those trying to log in. A 503 error occurs when the server is down, usually because because it's down for maintenance or unavailable for access.

For the 1.2 million FTX consumers, the situation is still confusing and risky.

Users of the FTX app have received an update, but experts advise all FTX customers not to run the update or connect with their FTX account at this time.

Customers are encouraged to wait until there is more clarity, presumably in the form of an official announcement from FTX, before making any changes to their accounts:

According to his most recent tweet, Changpeng Zhao (CZ), the founder and CEO of Binance, is not pleased with the most recent development:

Elon Musk also joined, even though you'd think he already had enough issues to deal with in light of the blue tick saga:

What do you think about FTX’s recent controversies? Let us know by sharing this article on your social media channels.

Nov 12, 2022
Crypto News

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