$1 billion of FTX customer funds have vanished, Reuters reported

Crypto exchange FTX appears to have been hacked, rumors state that attackers stole $600 million drained from the company’s wallets.

Crypto exchange FTX is recommending users to delete FTX apps and avoid using its website, a circumstance that refutes the rumors that the rumors of a $600 million crypto heist.

The owners of several wallets of the crypto exchange are also reporting that the have been emptied, experts also reported that FTX’s API were not available.

The company General Counsel Ryne Miller confirmed the hack on the official Telegram channel.

Miller later announced that FTX US and FTX [dot] com started moving all digital assets to cold storage as a precautionary measure to mitigate the hack.

https://twitter.com/_Ryne_Miller/status/1591326796305530880

Miller also confirmed that the company investigated suspicious wallet transactions.

https://twitter.com/_Ryne_Miller/status/1591281729125613570

Hundreds of millions of dollars are now flowing out of FTX wallets, some speculate liquidators but it's late on a friday night, not typical times for such rapid heavy movements. Some withdrawals are being swapped from Tether to DAI. Hack or insider actions? $26 million here pic.twitter.com/8wWlaE7na9

— foobar/ (@0xfoobar) November 12, 2022

The crypto exchange filed for bankruptcy on Friday after a large number of customer withdrawals earlier this week. 

“According to on-chain data, various Ethereum tokens, as well as Solana and Binance Smart Chain tokens have exited FTX’s official wallets and moved to decentralized exchanges like 1inch. Both FTX and FTX US appear to be affected.” reported Coin Desk.

According to the Reuters, which cited two people familiar with the matter, at least $1 billion of customer funds have vanished from the collapsed crypto exchange.

“The exchange’s founder Sam Bankman-Fried secretly transferred $10 billion of customer funds from FTX to Bankman-Fried’s trading company Alameda Research, the people told Reuters.” reported the Reuters.

“A large portion of that total has since disappeared, they said. One source put the missing amount at about $1.7 billion. The other said the gap was between $1 billion and $2 billion.”

The two people revealed that the losses were reported in the records that FTX founder Sam Bankman-Fried shared with other senior executives last Sunday.

Bankman-Fried told Reuters that he “disagreed with the characterization” of the $10 billion transfer.

“We didn’t secretly transfer,” he said. “We had confusing internal labeling and misread it,” he added.

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Pierluigi Paganini

(SecurityAffairs – hacking, cryptocurrency)

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