Paxos Recovers $20 Million Stolen In The FTX Hack

Key Points:

• 11,184 Paxos Gold (PAXG) tokens worth $20 million which were taken during the FTX hack, have been returned to Paxos.

FTX’s November hack by an unidentified attacker resulted in the recovery of $20 million worth of gold tokens by Paxos, a blockchain and trust startup.

As Coincu reported on November 15, Paxos said that U.S. federal authorities had ordered the company to freeze $19 million in bitcoin linked to the insolvent FTX exchange. Over 24 hours on the day, the tokens had been transferred from FTX.com to unidentified wallet addresses. 

Soon after Sam Bankman-Fried sought Chapter 11 bankruptcy protection last month, their failing exchange was taken advantage of to the tune of $400 million. The Paxos Gold (PAXG) tokens, which are backed by actual gold held by the firm, were among the stolen goods.

In four wallets under the hands of hackers, the firm swiftly frozen 11,184 Paxos Gold (PAXG) tokens worth $20 million. The team has now completely regained the assets, roughly six weeks.

Security company PeckShield discovered based on on-chain data that Paxos took action yesterday to relocate the stolen tokens from addresses designated as “FTX Accounts Drainer” by Etherscan to a null address and burn them. It then completed the reclamation process by minting the identical amount into another wallet.

The Paxos recovery, however, only accounts for a minor percentage of the robbery. The FTX reserves’ ether holdings were $302 million at one time in the FTX drainer wallet, but virtually all of that money was lost when it was exchanged for bitcoin and could not be recouped.

John Ray III, the new CEO of FTX, stated in prepared testimony that FTX had very lax security measures in place and was storing private keys to its wallets in an unencrypted way, all of which might have made it very easy for the breach to occur.

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

Thana

Coincu News