Administrators of the Telegram group of the FTX community stated that the platform had been hacked and all the funds of the exchange appeared to be gone. FTX US General Counsel Ryne Miller, who allegedly pinned the message in the group, explained that he was investigating “abnormalities” regarding FTX balances across other exchanges.
FTX officials report victim of Telegram hack
An administrator of the now-closed FTX community Telegram group announced that the exchange was the victim of a hack attempt on November 12. The message, which was pinned by FTX US General Counsel Ryne Miller, informed of a hack in progress and advised customers to stay away from using FTX apps, reporting that they too could be compromised.
The administrator, identified as Rey, wrote:
FTX has been hacked. FTX apps are malware. Delete them. The chat is open. Do not visit the FTX website as it may download trojans.
Several users on social media have reported having their wallet in the switchboard drained of their funds and see the exchange of tokens with stablecoins such as Dai onchain. Nansen’s Martin Lee observed “massive withdrawals to the same wallet”, which the stock exchange had not previously informed about.
General Counsel Sees Abnormal, Onchain Funds Blocked by Tether
While FTX’s usual communication channels have been silent on the issue, Ryne Miller, FTX US General Counsel, reported looking into these transactions earlier in the evening. Miller tweeted:
Investigating wallet movement abnormalities related to consolidation of ftx balances across exchanges – unclear facts as other movements are not clear. Will share more info as soon as we have it.
Funds that have been withdrawn in the form of USDT in various chains have been blocked by Tether, according to reports. More than 30 million USDT were involved in this move.
Miller also reported that the exchange is now moving the remaining funds to cold wallets to preserve the remaining capital after an investigation into these “unauthorized transactions”. He tired:
Following the Chapter 11 bankruptcy filings – FTX US and FTX [dot] com initiated precautionary measures to move all digital assets to cold storage. The process was sped up this evening – to reduce damage from observing unauthorized transactions.
According to a report from Reuters, former FTX boss Sam Bankman-Fried is said to have had a back door in FTX’s system. “In a subsequent investigation, FTX’s legal and financial teams also learned that Mr Bankman-Fried implemented what the two individuals described as a ‘backdoor’ into FTX’s bookkeeping system, which was built using custom software,” Reuters reported.
The news agency also spoke to Bankman-Fried via text and Reuters said Bankman-Fried denied any existence of a backdoor. The exchange had filed for Chapter 11 bankruptcy protection on November 11. The story is still developing as the movement of funds is still ongoing at the time of writing.
What do you think about the announcement of FTX’s Hack in the Telegram group? Tell us in the comments section below.
Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late to the game, having entered the cryptosphere when the price spike occurred during December 2017. He has a computer engineering background, lives in Venezuela and is influenced by the cryptocurrency boom on a social level, offering a different point of view on crypto success and how it helps the unbanked and underserved.
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