An estimated $662 million in digital assets has reportedly been withdrawn from FTX in ‘unauthorized transactions’
FILE PHOTO: FTX founder Sam Bankman-Fried is shown testifying to a US House committee last December in Washington. © Getty Images / Alex Wong
Failing cryptocurrency exchange FTX has begun moving assets offline, after more than $600 million in tokens was allegedly pilfered from the digital wallets on its platform.
After filing for bankruptcy protection from creditors on Friday, FTX “initiated precautionary steps to move all digital assets to cold storage,” said Ryne Miller, general counsel for the firm’s US arm. “Process was expedited this evening to mitigate damage upon observing unauthorized transactions.”
However, considerable damage had already been done. According to an estimate by blockchain research firm Nansen, $662 million flowed out of FTX’s US and international exchanges. The firm’s main wallet, which was used to process withdrawals, was drained of its entire balance of 45.8 million FTT tokens, worth an estimated $97.2 million, Nansen said.
FTX's main wallet used to process withdrawals drained of it's entire FTT balance 1 hour ago45.8M FTT tokens withdrawn, ~$97.2M in value pic.twitter.com/rVNc8ayLxw
— Martin Lee | Nansen 🧭 (@themlpx) November 12, 2022
A separate review by another analytics firm, Elliptic Connect, pegged the thefts at $473 million. The FTX community administrator on Telegram said the exchange had been hacked. FTX applications are infected with malware, according to the administrator, which also warned followers against loading the exchange’s website.