Written by 12:37 am Science & Technology Views: 0

FTX says $415M in crypto was hacked because it filed for bankruptcy

Bankrupt cryptocurrency exchange FTX said in a report back to creditors on Tuesday that roughly $415 million in cryptocurrency was stolen consequently of the hacks.

About $323 million in cryptocurrency has been hacked from the international exchange FTX and $90 million from the US exchange because the company filed for bankruptcy on November 11, CEO John Ray said Tuesday in a separate statement.

FTX founder Sam Bankman-Fried has been accused of stealing billions of dollars from FTX clients to repay debts incurred by his hedge fund Alameda Research. Bankman-Fried pleaded not guilty to the fraud charges.

FTX told a Delaware bankruptcy judge last week that it had recovered greater than $5 billion in crypto, money and liquid securities nine weeks after filing for bankruptcy.

On Tuesday, the corporate provided additional details, saying it had recovered $1.7 billion in money, $3.5 billion in liquid cryptocurrency and $300 million in liquid securities.

FTX didn’t provide an estimate of total liabilities, but said it had identified significant shortcomings on each international and US crypto exchanges.


Check out The Post’s latest news on the Sam Bankman-Fried FTX scandal


“We are making progress in our efforts to maximise recovery, and the invention of this preliminary information required a Herculean investigative effort by our team,” Ray said in an announcement.

Crypto assets recovered thus far include $685M in Solana, $529M in proprietary FTT FTX token, and $268M in Bitcoin, based on cryptocurrency prices as of November 11, 2022. Solana, praised by Bankman-Fried, has lost most of its assets value in 2022

During FTX’s initial investigation into hacks into its system, a November seizure of assets by the Bahamas Securities Commission was uncovered, resulting in a dispute between US bankruptcy team FTX and Bahamian regulators.

The two sides settled their disputes in January, and Ray said on Tuesday that the Bahamas government was holding $426 million for creditors.

Bahamian Prime Minister Philip Davis addressed the dispute at Tuesday’s event on the Atlantic Council in Washington, saying Ray’s team “got over” and accepted that the seizure of assets within the Bahamas “was the proper thing to do and maybe saved the day for a lot of investors in FTX.”

(Visited 1 times, 1 visits today)
Close