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FTX reportedly stores private keys to its crypto wallets without encryption

SBF founder of FTX

The former CEO of FTX, Sam Bankman-Fried, has been charged with fraud by U.S. authorities, a month after the crypto exchange filed for bankruptcy protection.

This follows the revelation that FTX previously stored private keys to its crypto wallets without encryption, leaving them vulnerable to theft.

The new CEO, John Ray III, testified to the U.S. House Financial Services Committee that he took steps to secure more than $1 billion worth of digital assets after discovering that the private keys were stored unencrypted.

In November, wallets belonging to FTX were reportedly hacked, with estimates ranging from $300-$400 million. Bankman-Fried suggested that a “disgruntled employee” may have stolen the private keys to the crypto wallets.

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Judith Faith has been writing about cryptocurrencies and blockchain technology for over five years. She is well versed in the industry and has an extensive network of industry contacts. She is also a frequent contributor to various cryptocurrency publications. With her vast knowledge and experience, she is able to provide insightful and valuable content to her readers. Judith is also an active investor in the cryptocurrency space and has a vested interest in the success of the industry. She is passionate about helping to foster the growth of the industry and believes in the power of blockchain technology to revolutionize the world.