FTX Investigates “Abnormalities With Wallet Movements” As Fears Mount Of Potential Hack

Another day, another plot twist in the FTX bankruptcy saga. 

FTX — which was clearly insolvent after the biggest fraud in crypto history — filed for bankruptcy on Friday. The official Twitter account of FTX retweeted Ryne Miller, the company’s US general counsel, who warned late Friday: 

Investigating abnormalities with wallet movements related to consolidation of ftx balances across exchanges – unclear facts as other movements not clear. Will share more info as soon as we have it.” 

Miller then tweeted:

Following the Chapter 11 bankruptcy filings – FTX US and FTX [dot] com initiated precautionary steps to move all digital assets to cold storage. Process was expedited this evening – to mitigate damage upon observing unauthorized transactions.

Then another twist emerged when an administrator on the Telegram support group for FTX stated: 

“FTX has been hacked . . . Don’t go on FTX site as it might download Trojans.”

“With all eyes on FTX, the late-night fund transfers on a Friday night raised questions about the company’s intent. While some blockchain investigators saw it as the start of the bankruptcy process, speculations around ill-intent or an external hack surfaced across the crypto ecosystem,” Cointelegraph explained. 

FTX founder Sam Bankman-Fried resigned yesterday and was replaced by John J. Ray, III – the lawyer who helped clean up Enron – as incoming CEO.

SBF’s crypto empire collapse resulted in Bloomberg’s Billionaire Index downgrading his net wealth from $15.6 billion on Nov. 4 to zero by Friday. 

Many on Twitter speculate SBF jumped on a private jet to Argentina. 

It remains unclear if the late-night fund transfers, totaling more than $600 million, according to CoinDesk, are part of the bankruptcy process or something more sinister, such as a hack. 

Reuters spoke with two people familiar with the matter who said upwards of $1 billion of customer funds have vanished from FTX. 

CoinDesk said, “Many FTX wallet holders are also reporting that they are seeing $0 balances in their and FTX US wallets.”


Read further at ZeroHedge

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