FTX Liquidation Team Consolidates Client Funds in Cold Storage

FTX Liquidation Team Consolidates Client Funds in Cold Storage

On the morning of November 12, there were rumors of a hack on FTX, which is in the process of bankruptcy, as the exchange began to rapidly lose customer funds. However, FTX's legal counsel explained this as a "precautionary measure."

According to network observers Eherscan, Solscan and Bscscan, on the morning of November 12, suspicious activity and unconventionally large transactions related to FTX wallets were recorded. Almost immediately, millions of dollars began to be withdrawn from the exchange, and the balances of some users were reset to zero.

Warnings appeared on social networks that hackers took advantage of the opportunity and moved assets to their wallets. Since a number of key employees, including those responsible for network security, left the exchange team against the backdrop of bankruptcy, part of the crypto community interpreted the event as a successful hacker attack on FTX.

In his first comments, FTX General Counsel Ryne Miller stated that the exchange "has begun an investigation into an anomaly related to the withdrawal of funds from FTX balances." A few hours later, in a re-address to the community, Miller said:

“After filing for Chapter 11 bankruptcy, we have taken precautions to move all digital assets to cold storage. The process was expedited last night to reduce potential damage from unauthorized transactions."

Cryptocurrency exchange FTX posted on its Twitter a screenshot of the announcement that it is filing for bankruptcy - the company will begin the process of verifying and monetizing assets in favor of all interested parties.

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