The FTX exchange allegedly suffered a cyberattack in which a hacker made off with over $350 million worth of cryptocurrency assets the night before the exchange filed for Chapter 11 bankruptcy protection.
The United States Justice Department has opened an inquiry into the incident.
An Alleged $400 Million Hack
Prior to declaring bankruptcy, FTX announced a cyberattack on Twitter, alleging that a hacker had broken into the system and stole over $350 million worth of cryptocurrency from the exchange.
This was initially identified as a withdrawal, but the amount started to increase and was also only transferred to one account.
Due to this suspicious behaviour, FTX triggered the alarm alerting the public that there was a hack on its platform and had to halt all withdrawals.
Many FTX personnel, however, claimed that they were unaware of and unable to identify any of the transactions and withdrawals taking place at the time.
After some time passed, FTX General Counsel tweeted that his company had started looking into the unusual withdrawal that had occurred on the platform that morning.
Also read:He also moved to the Telegram app to announce that FTX had been hacked and pinned the message on the group for all to see.
He then warned investors at the time to halt all activities and refrain from clicking on links since malicious links were being sent in an effort to drain out investors’ assets and funds.
The Official FTX account on Twitter stated nothing at all about the situation despite all the events that were taking place that day.
Through their personal accounts, FTX executives informed the general public that they had contacted law enforcement agencies about this hack situation.
Investigation Ongoing About The Hack
The focus of this investigation is to find out what exactly happened to the $400M and if it was a hacker-related incident or merely an inside job by the FTX team.
Due to many clues point to this possibility, block chain analysts have speculated that the hacker was an FTX insider.
More information about the investigation’s progress and findings has yet to be released, but the Department of Justice is determined to learn what happened in the exchange before it filed for bankruptcy.
At Tokenhell, we help over 5,000 crypto companies amplify their content reach—and you can join them! For inquiries, reach out to us at info@tokenhell.com. Please remember, cryptocurrencies are highly volatile assets. Always conduct thorough research before making any investment decisions. Some content on this website, including posts under Crypto Cable, Sponsored Articles, and Press Releases, is provided by guest contributors or paid sponsors. The views expressed in these posts do not necessarily represent the opinions of Tokenhell. We are not responsible for the accuracy, quality, or reliability of any third-party content, advertisements, products, or banners featured on this site. For more details, please review our full terms and conditions / disclaimer.