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Crypto Exchange Lost $1 Billion of Client Money

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The events and reports about the insolvent crypto exchange FTX are currently overturning. Shortly after it became known on Friday that the company had filed for bankruptcy, there were warnings about alleged hackers and missing millions.

The Bahamian stock exchange supervisory authority had announced that all assets had been frozen in order to avert damage to creditors and users. Apparently, that came too late.

According to a report by the Reuters news agency , the crypto exchange is believed to be missing around a billion dollars that have “trickled away”.

The exchange’s founder, Sam Bankman-Fried, secretly transferred $10 billion in client funds from FTX to Bankman-Fried’s trading company Alameda Research, according to the report, an unspecified source confirmed to Reuters.

A part of this sum has since disappeared. According to the findings, the damage is said to be between 1 and 2 billion dollars.

Sam Bankman-Fried said in a statement to Reuters he was not aware of any missing funds. “We didn’t transfer secretly,” Bankman-Fried said. However, funds are said to have flowed, which is said to have been an error. It’s all very strange what’s going on there.

Unknown hack

There were also warnings that attackers had hacked the exchange and were now using their apps for their own purposes. Coindesk said that FTX itself warned in the Telegram support group. “FTX has been hacked. FTX applications are malware. Delete them. Chat is open. Do not go to the FTX website as Trojans could be downloaded there,” wrote an account admin in the FTX-Telegram chat.

Ron Harold

It has been a long time since I joined Research Snipers. Though I have been working as a part-time tech-news writer, it feels good to be part of the team. Besides that, I am building a finance-based blog, working as a freelance content writer/blogger, and a video editor.

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