FTX insider has reportedly stated that recent FTX “hack” was illegal withdrawal of funds from FTX to Alameda Research
Mario Navafal, the founder of the IBC Group, has claimed on Twitter that Sam Bankman-Fried made massive withdrawals through a backdoor that was deliberately created on his orders.
Did SBF secretly move FTX funds to Alameda Research?
Mario Nawfal has referred to an anonymous insider at the bankrupt FTX exchange, who shared that Bankman-Fried had withdrawn funds from FTX wallet to Alameda Reseatch and some other entities.
To do this, SBF used a backdoor that was created by the exchange’s CTO, Gary Wang, at his direction.
Apparently, Nawfal was talking about the hack that was announced by FTX on Friday when more than $400 million worth of digital currencies were shifted from the wallets of the exchange.
CoinDesk said the amount of money withdrawn from the FTX wallet exceeded $600 million in crypto.
Here’s who insider was
The insider in question is Yung Dot, former senior engineer at FTX. In a long thread, he spoke about what Mario Nawfal put into one tweet.
DoT confirmed that they shared the information privately with Nawafal. He said the recent hack was made possible because of a backdoor that was created about nine months ago on the instructions of Sam Bankman-Fried.
The entire hack was possible due to the elx trapdoor SBF put in ~ 9 months ago.
According to him, the amount of crypto stolen through this backdoor is as high as $783 million.
All eyes on Crypto.com after FTX
After the FTX scandal, head of Binance CZ called on all exchanges to share their proof of reserves.
After that, Kris Marszalek, CEO of the Crypto.com exchange, admitted to a mistake made about three weeks ago, as a surprising amount of around $400 million worth of Ethereum was “accidentally” sent to the wrong address.
According to Marszalet, Crypto.com intended to move Ethereum to one of its cold wallets but instead shifted the 320,000 ETH to a corporate wallet of Gate.io exchange, as covered by The Verge.
The funds were then successfully refunded to Crypto.com. However, the previous similar case of this exchange did not end so smoothly. In August, a similar mistake happened when the platform sent $7.2 million in crypto to a user who was supposed to get a refund of $69. Now, the exchange is suing this person to get the money back.
After urging exchanges to provide proof of reserves, CZ of Binance warned the community in a tweet that if an exchange has to move large amounts of crypto prior to or after providing the aforementioned proof, it is a clear sign of problems.
A former employee of Crypto.com told mario navafal A sum as large as $400 million in crypto could not be transferred “accidentally” as it would require “manual approval and various checks”.
