FTX: Over $400m Was Stolen from Bankrupt Exchange

Embattled cryptocurrency exchange FTX has claimed that $415m worth of digital currency has been stolen by hackers.

The bankrupt firm and its “affiliated debtors” announced the news to customers and stakeholders earlier this week.

They said that $5.5bn of liquid assets have been identified – including $1.7bn in cash, $3.5bn in crypto assets and $0.3bn of securities.

However, $323m in funds from FTX.com had been “subject to unauthorized third-party transfers,” while a further $90m from the FTX US exchange were taken in the same way, the statement noted.

This activity occurred after the November 11 2022 “petition date” – the date when chapter 11 bankruptcy was filed by the firm.

It’s been reported that a further $2m was taken from FTX sister firm and crypto trader/hedge fund, Alameda Research, co-founded by FTX’s Sam Bankman-Fried.

It’s unclear if the $415m loss stems from the same incident in which $477m in funds were stolen from FTX. That heist was uncovered shortly after the firm collapsed.

Bankman-Fried also faces criminal charges unveiled in December.

Unsealed on December 13, they include conspiracy to commit wire fraud, wire fraud, conspiracy to commit commodities fraud, conspiracy to commit securities fraud, conspiracy to commit money laundering, and conspiracy to defraud the Federal Election Commission and commit campaign finance violations. 

These carry a combined maximum jail term of over 100 years.

ImmuniWeb founder Ilia Kolochenko argued that although an external intrusion was possible, it would be prudent to remain skeptical about the cause of the $415m heist.

“In view of the notorious context, we may actually have at least three interrelated hypotheses: a genuine data breach by unknown cyber threat actors; a sophisticated embezzlement of funds disguised as an external data breach; and an external data breach facilitated by malicious insiders not necessary affiliated with the FTX management,” he argued.

“Therefore, a scrupulous investigation by a competent and independent cybersecurity company is required prior to making any conclusions.”