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Mysterious FTX Hack After Bankruptcy Finally Investigated by US Authorities

$372 million hack on crypto exchange FTX

The US Department of Justice (DOJ) is reportedly investigating a $372 million hack on cryptocurrency exchange FTX that occurred as the company filed for bankruptcy on November 11.

According to blockchain analytics unit, $663 million in various cryptocurrencies belonging to FTX was suspiciously on the move, with $180 million confirmed as FTX moving funds into cold storage and the remaining $477 million allegedly being quickly swapped into ether and stablecoin DAI by the hackers.

FTX CEO John Jay Ray III confirmed the hack and said the company was in contact with law enforcement.

The DOJ’s investigation is separate from the existing fraud cases against former FTX CEO Sam Bankman-Fried, who is facing an eight-count federal indictment including wire and securities fraud charges and is out on bail in California.

Bankman-Fried has suggested that the hacker could be someone from within FTX or someone who installed malware on a former employee’s computer.

Former FTX and Alameda executives Gary Wang and Caroline Ellison have both pleaded guilty to federal criminal charges and are cooperating with authorities in further investigations.

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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.