FTX Has Been Hacked, Mysterious Outflows Totaling More Than $600M

Late on Friday, more than $600 million in cryptocurrency vanished from the wallets of the defunct cryptocurrency corporation FTX, with no obvious reason given.

Soon after, FTX announced that it had been hacked in its official Telegram channel and advised users not to install any new updates and to delete all FTX apps.

“FTX has been hacked. FTX apps are malware. Delete them. Chat is open. Don’t go on FTX site as it might download Trojans,” wrote an account administrator in the FTX Support Telegram chat. The message was pinned by FTX General Counsel Ryne Miller.

Various Ethereum tokens, as well as the Solana and Binance Smart Chain tokens, have left FTX’s official wallets and transferred to decentralized exchanges like 1inch, according to on-chain statistics. It appears that both FTX and FTX US are impacted.

At a previous point in the evening, Miller tweeted that he was “investigating irregularities with wallet movements connected to aggregation of ftx balances across exchanges.”

The transfers occur on the same day that FTX formally filed for Chapter 11 bankruptcy protection after losing allegedly billions of dollars in user payments. The transfers have not been officially acknowledged by FTX leadership.

FTX wallets have also reported seeing $0 balances in their FTX.com and FTX US wallets

FTX founder Sam Bankman-Fried was the target of filthy jokes and insults that were apparently included in some of the transactions. This led to quick speculation on Twitter from members of the cryptocurrency community that the funds had been siphoned off as part of some sort of attack.

Others thought that a member of Bankman-inner Fried’s circle might be in charge of organizing the outflows. Multiple former FTX employees confirmed to me that they do not recognize these transfers, Twitter sleuth ZachXBT wrote in a tweet on Friday night.

With names like “cumsock.eth” and “downsyndromemonkey.eth,” many of the transactions seemed to be trolls when the wallet address became known, seeking to have their vanity names permanently inscribed in a ledger that would likely be submitted as a court document and read aloud by a judge.

By midnight Eastern Time, FTX’s login interface was down (the website is still up), and anyone who attempted to log in received a 503 error. When a server is down for maintenance or inaccessible for any other reason, a 503 error occurs.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Website: coincu.com

Annie

CoinCu News