FTX Says It’s Investigating “Unauthorized Transactions”

Content of the article

Collapsed crypto exchange FTX said on Saturday it was moving funds to offline storage following a series of “unauthorized transactions”, with analysts saying millions of dollars in assets had been withdrawn from storage. platform.

FTX’s U.S. General Counsel Ryne Miller said in a tweet on Saturday that the exchange is expediting the process of moving all digital assets to cold storage “to mitigate damages when observing unauthorized transactions. “.

Content of the article

Cold storage refers to crypto wallets that are not connected to the internet to protect against hackers.

Content of the article

Late Friday, Miller tweeted that he was “investigating anomalies with portfolio movements related to the consolidation of FTX balances on exchanges.”

Figures from Singapore-based analytics firm Nansen showed a net outflow of around $266 million from FTX in one day, with $73 million withdrawn from FTX US alone.

FTX did not respond to a request for comment from Reuters.

Prior to Miller’s tweets, FTX officials appeared to confirm hack rumors on the company’s Telegram channel, according to a report from CoinDesk which indicated that the exchange had asked customers to remove FTX apps and avoid its website.

“FTX has been hacked,” an account administrator wrote on the FTX Support Telegram channel in a post, according to CoinDesk.

Reuters could not immediately verify the details posted on FTX’s private Telegram channel.

FTX, crypto trading affiliate Alameda Research and about 130 of its other companies have filed for Delaware creditor protection in bankruptcy court, FTX said on Friday.

The distressed crypto trading platform had struggled to raise billions as traders withdrew $6 billion worth of crypto tokens from the platform in just 72 hours and rival exchange Binance dropped a bailout deal offered this week. (Reporting by Akriti Sharma in Bengaluru; Editing by William Mallard and Pravin Char)


Back to top button