•FTX filed for bankruptcy after Binance backed off from a potential acquisition deal.
• A day later, reports started coming up that some of the SBF-founded exchange’s wallets were being drained, and the total amount neared $500 million at the time.
• The Securities Commission of the Bahamas took it to Twitter to shed some more light on the events, informing that it was actually the watchdog that siphoned the funds in order to protect customers and creditors of the fallen exchange.
• FTX will cooperate with other global watchdogs to “address matters affectingthe creditors, clients, and shareholders of FDM.”
The more recent story
The Bahamian Securities Commission (BSC) has announced that it was the watchdog that siphoned funds from fallen crypto exchange FTX in order to protect customers and creditors. The move comes after FTX filed for bankruptcy after Binance backed off from a potential acquisition deal.
At the time of the bankruptcy filing, FTX was estimated to have around $500 million worth of assets. However, in the days since, reports have emerged that some of FTX’s wallets were being drained, with the total amount taken nearing $1 billion.
The BSC clarified on Twitter that it was not itself behind the draining of funds, but rather was working to protect customers and creditors from any potential damage. It also said that FTX would cooperate with other global watchdogs to “address matters affecting the creditors, clients, and shareholders of FDM.”
The Drain on FTX’s Wallets
Some of FTX’s wallets were being drained of their cryptocurrency, with the total value stolen nearing $1 billion. The BSC was not behind the theft, but rather was working to protect customers and creditors from any potential damage.
FTX is currently cooperating with other global watchdogs to address matters affecting the creditors, clients, and shareholders of FDM. In the meantime, the BSC is working to RETURN all stolen funds to their rightful owners. We will continue to provide updates as this situation develops.
The BSC is committed to protecting investors and will continue to monitor the situation at FTX closely. We encourage anyone with information about this matter to come forward so that we can RETURN all stolen funds to their rightful owners.
The story before
The implosion of cryptocurrency exchange FTX has already cost customers billions of dollars in lost crypto deposits, setting off law-enforcement investigations that could lead to criminal charges.
A day after it filed for bankruptcy, FTX said on Saturday that it was investigating “unauthorized transactions” flowing from its accounts, as crypto researchers documented suspicious transfers of $515 million that may have been the result of a hack or theft.
John J. Ray III, the newly instated chief executive of FTX, said in a statement that “unauthorized access to certain assets has occurred,” and that the company was in touch with law enforcement officials and regulators. As part of the bankruptcy process, the company has been moving its remaining crypto funds to a more secure form of storage
The news of the possible FTX theft sent shockwaves through the crypto world late Friday night, as community members examined public transaction records documenting the large-scale movement of cryptocurrencies. A report released by the crypto research firm Elliptic indicated that $515 million worth of digital assets may have been stolen or hacked. The Elliptic team noted that the rapid transfers of these cryptocurrency funds to decentralized exchanges (DEXs) pointed to foul play, as this is a common technique used by hackers to prevent their haul from being seized. Initially, it was thought that the hack was Sam Bankman-Fried’s doing as some speculated he was trying to flee the country with the money.
While the exact nature of the transfers remains unclear, it seems likely that either a hacker gained access to the FTX exchange’s system or an insider with special privileges chose to abscond with a large sum of digital assets. When asked for comment on the situation, FTX CEO Sam Bankman-Fried stated that they were still sorting through the matter with their bankruptcy team. This FTX hack would mark one of the largest breaches in the crypto industry to date, and serves as a reminder of the importance of safeguarding one’s digital assets.