Several wallets belonging to FTX were drained.
TL:DR
•Another hack occured on Friday night, wallets belonging to FTX were drained of hundreds of millions of dollars in coins.
• The funds were transferred from Tether (USDT) into stablecoin DAI and from staked Ethereum (stETH) into Ethereum (ETH).
• Blockchain developer and auditor Foobar noticed the first transfer of $26 million and issued an alert at 9:47 pm EST.
• As the movement continued in real time—all trackable on Etherscan—Crypto Twitter erupted in theories. Was it a hack, or an inside job from FTX leadership safeguarding their own funds?
• At 11:08 pm EST, FTX US general counsel Ryne Miller tweeted that they were “investigating abnormalities with wallet movements related to consolidation of ftx balances across exchanges.”
• Just before midnight, an FTX Telegram administrator named Rey posted: “Ftx has been hacked. All funds seem to be gone.”FTX apps are malware. Delete them. Chat is open. Don’t go on ftx site as it might download Trojans.”
FTX newest victim of hack
Another hack to report occured on Friday night, wallets belonging to the FTX cryptocurrency exchange were drained of hundreds of millions of dollars in coins. The funds were transferred from Tether (USDT) into stablecoin DAI and from staked Ethereum (stETH) into Ethereum (ETH). Blockchain developer and auditor Foobar noticed the first transfer of $26 million and issued an alert at 9:47 pm EST. As the movement continued in real time—all trackable on Etherscan—Crypto Twitter erupted in theories. Was it a hack, or an inside job from FTX leadership safeguarding their own funds?
At 11:08 pm EST, FTX US general counsel Ryne Miller tweeted that they were “investigating abnormalities with wallet movements related to consolidation of ftx balances across exchanges.” Just before midnight, an FTX Telegram administrator named Rey posted: “Ftx has been hacked. All funds seem to be gone.”FTX apps are malware. Delete them. Chat is open. Don’t go on ftx site as it might download Trojans.”
The events of Friday night are still under investigation, but what is clear is that hundreds of millions of dollars were stolen in a sophisticated attack. If you have any dealings with FTX, be sure to delete their apps and monitor your computer for any signs of malware. The chat room for FTX investors is open, and the company has said that they will be issuing a statement soon.
How the Hack Happened
It’s still unclear exactly how the hack happened, but what is known is that at 9:47 pm EST on Friday night, blockchain developer and auditor Foobar noticed unusual activity on the Ethereum network. Specifically, there was a large transfer of $26 million from Tether (USDT) wallets into stablecoin DAI wallets. Furthermore, there was a simultaneous transfer of Ethereum from staked ETH wallets (used to earn rewards for participating in ETH 2.0 staking) into regular ETH wallets.
Foobar alerted Crypto Twitter to the suspicious activity, and soon enough, people were watching the transfers happen in real-time on Etherscan. As more and more funds were moved—totaling hundreds of millions of dollars—speculation began to mount as to whether this was a hack or an inside job. Some people even theorized that this was simply a consolidation of FTX balances across different exchanges.
At 11:08 pm EST, Ryne Miller, general counsel for FTX US, tweeted that they were aware of the situation and investigating potential abnormalities with wallet movements. Just before midnight, an FTX Telegram administrator named Rey posted: “Ftx has been hacked. All funds seem to be gone.” Rey went on to say that FTX apps are malware and advised people to delete them immediately. He also warned people not to visit the FTX website as it might download Trojans onto their computer.
The Aftermath of the Hack
The events of Friday night are still under investigation, but what is clear is that hundreds of millions of dollars were stolen in a sophisticated attack—one that took advantage of both human error and technical vulnerabilities. If you have any dealings with FTX, be sure to delete their apps and monitor your computer for any signs of malware. The chat room for FTX investors is open, and the company has said that they will be issuing a statement soon. In the meantime, stay safe out there and always practice good security hygiene!
Did you enjoy this article? We have many more for you to read on our website. Be sure to check them out and follow our socials to stay tuned.Be sure to sign up to our newsletter as well.