According to news first reported by Bloomberg (via CoinDesk), a source familiar with the case said federal prosecutors had filed for $370 million in cryptocurrency exchange FTX just hours before it filed for bankruptcy due to cybercrime. It said it was investigating the possibility of losing more. .
Concerns about a suspected FTX hack have reached a boiling point amid the exchange crash. Blockchain industry experts point to plenty of evidence suggesting the hacker was an FTX insider, including hacking his FTX and his FTX at the same time. involved in the effort.
Analysts now say the attacker’s digital footprint indicates deliberate internal work. This prompted the Justice Department to open a criminal investigation into the missing funds, separate from the fraud case against FTX co-founder Sam Bankman-Fried. Freed is accused of defrauding the United States and taking customer money without authorization. He was arrested in the Bahamas, extradited to the United States, and later released on bail.
The U.S. Department of Justice probably didn’t miss the point, as some of the FTX workers also observed bizarre outflows of funds from the exchange on November 11th and 12th. As a Twitter user, ZachXBT found out about it and tweeted about it, to a mixed response from the community.
Hundreds of millions of dollars are now flowing out of FTX wallets, some liquidators speculate, but late Friday night is not a typical time for such a rapid and violent move. Gold is being exchanged from Tether to DAI. Hacking or insider action?$26 million here pic.twitter.com/8wWlaE7na9
— Hoover (@0xfoobar) November 12, 2022
Between midnight on November 11th and the first half of November 12th, we began withdrawing large amounts of cryptocurrency from FTX and FTX US accounts.
FTX legal counsel Ryne Miller tweeted that the business is “investigating anomalies in wallet movement,” while Telegram’s official support channel pin added, “FTX has been hacked. The FTX app is malware. I’ll delete it, the chat is open, please don’t go.” On the FTX site as it may download a Trojan horse. ”
Despite the turmoil, the official FTX Twitter account maintained radio silence.FTX’s new CEO, John Jay Ray III, released a statement on Miller’s Twitter account on the afternoon of November 12, claiming the hack had been hacked. and said it was in contact with law enforcement.
Authorities have been able to freeze some of the stolen cash, according to the story, and are conducting a separate criminal investigation into a fraud case against ousted former CEO Sam Bankman Freed.
U.S. prosecutors have called FTX a “fraud of an epic scale,” and the U.S. Department of Justice has said Bankman-Fried is responsible for billions of dollars in losses.
Also Read: Judge Releases FTX Co-Founder Sam Bankman-Fried on $250 Million Bail.Here’s what this means
