FTX Says It Confirmed Attack Report, Investigated ‘Unauthorized Transactions’
Crashed crypto exchange FTX said Saturday it is moving funds into offline storage following a series of “unauthorized transactions,” with analysts saying millions of dollars’ worth of assets have been lost. withdrawn from the platform.
FTX US General Counsel Ryne Miller said in a tweet on Saturday that the exchange is accelerating the process of moving all digital assets into cold storage “to minimize the damage of observing unauthorized transactions. “
Investigate anomalies with wallet movements related to consolidation of ftx balances on exchanges – dubious events as well as other unclear movements. Will share more information as soon as we have it. @FTX_Official
– Ryne Miller (@_Ryne_Miller) November 12, 2022
Cold storage refers to electronic money The wallet is not connected to the internet to prevent hackers.
Late Friday, Miller tweeted that he is “investigating irregularities with wallet movements related to the consolidation of FTX balances across exchanges.”
Figures from Singapore-based analytics firm Nansen show one-day net cash flow from FTX to be around $266 million (nearly 2,100 crore), with $73 million (nearly 580 crore) withdrawn from FTX US .
FTX did not respond to Reuters’ request for comment.
In light of Miller’s tweets, FTX officials seem to have confirmed rumors of a hack into the company Telegram channel, according to a CoinDesk report stating that the exchange instructed customers to delete FTX apps and avoid its website.
“FTX has been hacked,” an account administrator on the FTX Support Telegram channel wrote in a statement, according to CoinDesk.
Reuters could not immediately verify the details posted on FTX’s private Telegram channel.
FTX, affiliated cryptocurrency exchange Alameda Research, and about 130 of its other firms have filed for bankruptcy protection from creditors in Delaware, FTX said Friday.
The troubled crypto trading platform struggled to raise billions of dollars as traders withdrew $6 billion (nearly Rs 48,300) from crypto tokens from the platform in just 72 time and exchange opponents Binance abandoned a proposed rescue deal this week.
© Thomson Reuters 2022