Admins of the Telegram group of the FTX community stated that the platform had been hacked and all of the funds of the exchange seemed to be gone. FTX U.S. General Counsel Ryne Miller, who reportedly pinned the message in the group, explained he was investigating “abnormalities” regarding FTX balances across other exchanges.
FTX Officials Report Victims of Hack on Telegram
An administrator of the now closed Telegram group of the FTX community announced that the exchange was the victim of a hack attempt on November 12. The message, which was pinned by FTX US General Counsel Rain Miller, reported a hack in progress and advised customers to stay away from using FTX apps, reporting that they too could be compromised. Is.
The admin, identified as Rey, wrote:
FTX has been hacked. FTX apps are malware. Delete them. Chat is open. Don’t go on FTX site as it might download Trojans.
Several users on social media have reported having their wallets on the exchange dry Given their wealth, and the swapping of their tokens for stablecoins like Dai Onchain. Martin Lee of Nansen saw “Mass withdrawals in a single wallet,” something the exchange had not disclosed earlier.
General Counsel Sees Abnormalities, Onchain Funds Blocked By Tether
While FTX’s regular communication channels have been silent on the issue, Ryne Miller, FTX U.S. General Counsel, reported being looking at these transactions earlier in the evening. Miller tweeted:
Investigating abnormalities with wallet movements related to consolidation of FTX balances across exchanges – obscure facts as other movements are unclear. Will share more information as soon as we have it.
Funds that have been withdrawn in the form of USDT in different chains have been blocked by Tether, according to reports. More than 30 million USDT were involved in this move.
Miller also noted that the exchange is now moving the rest of the funds to cold wallets in order to preserve remaining capital following an investigation into these “unauthorized transactions.” He Having said,
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.
According to a Reuters report, former FTX CEO Sam Bankman-Fried allegedly used a backdoor into FTX’s systems. “In a subsequent examination, the FTX legal and finance teams also learned that Mr Bankman-Fried implemented what the two men described as a ‘backdoor’ into FTX’s book-keeping system, which was built using bespoke software. Was,” Reuters reported.
The news outlet also spoke with Bankman-Fried via text and Reuters said Bankman-Fried denied any existence of a backdoor. The exchange had filed for Chapter 11 Bankruptcy protection on Nov. 11. The story is still in development as the movement of funds still continues at the time of writing.
