Category Archives: coingape.com

FTX and FTX US wallets have been impacted in a potential hack recording over $600 million in tokens transferred by the exploiter. FTX US General Counsel Ryne Miller earlier tweeted the wallet movements as “abnormal” and the facts and reasons were unclear to him or the FTX team.

In the following tweet, Ryne Miller claimed the FTX team hurried precautionary measures to move all digital assets to cold storage after recording some unauthorized transactions. Some believe former FTX developer Samuel Hyde is behind the hack.
Former FTX Employees Behind the Hack
On-chain experts observed millions in outflow from FTX and FTX US wallets, suspected to be the start of the bankruptcy process. However, FTX employees confirmed to ZachXBT that they don’t recognize these withdrawals. Moreover, FTX Community Chat admin dropped a message in the Telegram group saying that FTX has been hacked and FTX apps are malware. The admin also urged users to delete the app and warned of possible Trojans on the FTX website.
FTX US general counsel Ryne Miller in a tweet claimed that unauthorized transactions observed by FTX led the team to expedite transfers from wallets. He pointed out that FTX US and FTX.com are required to move all digital assets to cold storage as a precautionary measure as part of the Chapter 11 bankruptcy filings.
“Following the Chapter 11 bankruptcy filings – FTX US and FTX [dot] com initiated precautionary steps to move all digital assets to cold storage. Process was expedited this evening – to mitigate damage upon observing unauthorized transactions.”

Trending Stories

Defi and NFT project founder Foobar claimed FTX counsel noticed the black hat exploiters withdrawing tokens and swapping to ETH and DAI. Thereafter, he took white hat actions to save some funds from unauthorized transactions. Moreover, ZachXBT estimates the black hat transfers at nearly 450 million and white hat rescue from multisig at nearly 200 million so far.
Meanwhile, some claims FTX employees are behind the exploit, especially former FTX developer Samuel Hyde. While the motive is unclear, but the action may have been due to a conflict with the top leadership earlier this year.

advertisement

Tether Blacklists USDT Related to Hacker
Several on-chain data revealed that the exploiter was converting stablecoins to DAI and other crypto assets to Ethereum. As a result, stablecoin issuer Tether blacklisted $3.9 million USDT on Avalanche (AVAX) and $27.5 million USDT on Solana (SOL) of the FTX attacker, reported on-chain sleuth ZachXBT.
FTX Token (FTT) price fell to a low of $2.05 today. In the last 24 hours, the price has plunged over 35% and 90% in a week. The crypto market further slides over 3% amid the pressure due to the FTX crisis.
Read more: Over $1 Billion In Customer Funds Missing At FTX

✓ Share:

Varinder is a Technical Writer and Editor, Technology Enthusiast, and Analytical Thinker. Fascinated by Disruptive Technologies, he has shared his knowledge about Blockchain, Cryptocurrencies, Artificial Intelligence, and the Internet of Things. He has been associated with the blockchain and cryptocurrency industry for a substantial period and is currently covering all the latest updates and developments in the crypto industry.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

In a Twitter Space hosted by Mario Nawfal, Twitter CEO Elon Musk shared his impression of Sam Bankman Fried when latter approached him regarding a potential investment in Twitter.

Bankman-Fried contacted Musk in March, expressing his desire to participate in Musk’s bid for Twitter. When asked about SBF’s involvement in the deal in the  ‘Emergency Space‘ on Twitter, Elon said  “I had never heard of him. People told me that he’s got money that he wants to invest. And I talked to him for about half an hour.”

Also Read: Reports Suggest More Than $1 B In Customer Funds Missing At FTX
“My bullshit metre was like redlighting. This dude is full of shit. That was my impression,” he said. Elon told the audience, “That dude is just so wrong. He does not have capital. And he will not come through. That was my prediction. And that’s definitely what happened.”

Trending Stories

Elon Musk’s reaction to meeting SBF. Taken from an earlier Twitter spaces. h/t @rugmedry
pic.twitter.com/xtlXiGdZzb

advertisement

— Autism Capital 🧩 (@AutismCapital) November 12, 2022

Later, the host asked Elon Musk what recommendation he would give to the crypto community as it scrambles to save itself post FTX’s meltdown. To this, Elon agreed with the host’s stance on not storing crypto assets on exchanges, saying “Not your keys, not your wallet.”
Also Read: US Midterm Elections and FTX Collapse: Here’s How Crypto Twitter is Reacting

✓ Share:

Dhirendra is a writer, producer, and journalist who has worked in the media industry for more than 3 years. A technology enthusiast, a curious person who loves to research and know about things. When he is not working, you can find him reading and understanding the world through the lens of the Internet. Contact him at [email protected]

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

FTX News: Sam Bankman-Fried (SBF), Former CEO of FTX has been alleged of funding and lobbying in Washington, D.C over the last year. Now, the XRP holder’s lawyer has claimed that SBF and U.S. SEC are working on a negotiation deal.

Is SEC bailing out SBF?
John Deaton, Amicus Curiae in the XRP lawsuit called US representative candidates to get ready to file Subpoenas over SBF’s mother, Barbara Fried. He asked to add private emails, texts and messaging apps.
He claimed that SBF’s mother has likely reached out to Gary Gensler, SEC chair in an attempt to bag negotiations deal for her son. This will be an attempt to avoid a life sentence for the Ex FTX CEO.
Earlier, Coingape reported that expert believes that the US Watchdogs including SEC might be helping SBF to get away from the FTX crisis. However, the commission has already launched a probe on the FTX US. The agency will also investigate the probable connection between FTX and several other firms regarding SBF.
XRP Lawyer drops some of his perspectives on the FTX crisis handling. He highlighted that a software developer sits in jail without any clear evidence of what he did. There is just a piece of evidence that he provided the code.

Trending Stories

advertisement

✓ Share:

Ashish believes in Decentralisation and has a keen interest in evolving Blockchain technology, Cryptocurrency ecosystem, and NFTs. He aims to create awareness around the growing Crypto industry through his writings and analysis. When he is not writing, he is playing video games, watching some thriller movie, or is out for some outdoor sports. Reach me at [email protected]

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

In response to the sudden movement of funds out of FTX and FTX US wallets, Tether took a protective measure by blacklisting USDT related to the FTX wallet drainer. Almost $600 million in tokens were transferred out of wallets with stablecoins withdrawals swapped from Tether to DAI and other tokens swapped to Ethereum. On-chain sleuth ZachXBT asserts FTX employees confirmed that they don’t recognize transferred funds.

Tether Blacklists FTX Exploiter’s USDT
Stablecoin issuer Tether blacklisted $3.9 million USDT on Avalanche (AVAX) and $27.5 million USDT on Solana (SOL) of the FTX attacker, reported on-chain sleuth ZachXBT.
PeckShieldAlert in a tweet on November 12 also confirmed blacklisting USDT on AVAX related to FTX Accounts Drainer 0x59ab…32b. PeckShieldAlert also reported the movement of funds from multiple FTX wallets to 0x59AB…32b.
Moreover, many FTX users confirmed seeing $0 balances in their FTX.com and FTX US wallets. Crypto influencers expect the movement of funds as an insider job as an auto-update pushed to leak all private keys.
Foobar confirmed that somebody sent an on-chain message to the recipient account with 4byte selector “0x3d24a1ff”, which is the hash of the function name “Rug Pull All.” It confirmed the root access has been shared with someone rushing to liquidate funds.

Trending Stories

On-chain data indicates that funds were transferred from FTX and sold through DEX. Currently,UNI, stETH, 1INCH, WBTC, SUSHI, YFI, and LDO with addresses starting with 0x59ab are sold. Other tokens including PAXG, LINK, MATIC, AAVE, SNX, SHIB, and APE are still held.
In addition, FTX has 166 million US dollars of funds transferred to the address starting with 0xd801, including SRM, MATIC, CHZ, DYDX, BAND, MANA, ENS, CEL, HT, GRT, GALA, CRV, and other tokens.

advertisement

FTX US General Counsel Ryne Miller in a tweet said:
“Investigating abnormalities with wallet movements related to consolidation of ftx balances across exchanges – unclear facts as other movements not clear. Will share more info as soon as we have it.”
Elon Musk Reacts To FTX Crisis
Elon Musk tracking the FTX crisis also recognized Twitter’s contribution in tracking developments related to FTX in real-time. He also confirmed completing work on eliminating bots and spam on Twitter.

“FTX meltdown/ransack being tracked in real-time on Twitter.”

✓ Share:

Varinder is a Technical Writer and Editor, Technology Enthusiast, and Analytical Thinker. Fascinated by Disruptive Technologies, he has shared his knowledge about Blockchain, Cryptocurrencies, Artificial Intelligence, and the Internet of Things. He has been associated with the blockchain and cryptocurrency industry for a substantial period and is currently covering all the latest updates and developments in the crypto industry.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

According to a report by the news agency Reuters, at least $1 billion in client deposits have gone missing from the bankrupt cryptocurrency exchange FTX.

Reuters spoke to two sources who held senior positions in FTX until this week. The sources told Reuter’s that Sam Bankman-Fried, the exchange’s founder and former CEO, covertly moved $10 billion of customer funds from FTX to his trading company, Alameda Research.
They said that a significant amount of that sum has vanished. One source estimated that the lost sum could be around $1.7 billion. The other stated that there was a $1 billion to $2 billion deficit. Although it is well known that FTX transferred client funds to Alameda, this is the first time the lost amounts have been mentioned.
The sources allege that Bankman-Fried used a  “backdoor” in FTX’s book-keeping system to siphon off money. They claim that the “backdoor” enabled Bankman-Fried to execute commands that could change the company’s financial records without informing others, including external auditors.

Trending Stories

According to these two former employees, Bankman-Fried showed several spreadsheets to the executives of the company’s regulatory and legal teams that revealed FTX had transferred roughly $10 billion from FTX to Alameda. These spreadsheets detailed how much money FTX loaned to Alameda and what it was used for.
Sources allege that between $1 billion and $2 billion of these funds were not accounted for among Alameda’s assets. The spreadsheets did not show where this money was transferred, and sources stated they have no idea what happened to it.

advertisement

Currently, the US Securities and Exchange Commission is scrutinizing FTX.com’s management of client funds as well as its crypto-lending activities. The Department of Justice and the Commodity Futures Trading Commission are also looking into the matter.
SBF’s Response
In response to these allegations, Bankman-Fried told Reuters that he “disagreed with the characterisation” of the $10 billion transfer.
“We didn’t secretly transfer,” he explained. “We had confusing internal labelling and misread it,” he stated, without going into further detail.
When asked about the missing cash, Bankman-Fried texted, “???”
Further details are awaited regarding the missing funds.
Also Read: This Hedge Fund Might Collapse Over FTX Hack

✓ Share:

Dhirendra is a writer, producer, and journalist who has worked in the media industry for more than 3 years. A technology enthusiast, a curious person who loves to research and know about things. When he is not working, you can find him reading and understanding the world through the lens of the Internet. Contact him at [email protected]

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.