- Crypto Exchange FTX is investigating abnormal transactions of customer funds following a possible hack.
- Analysts said hundreds of millions were withdrawn from FTX, the Financial Times reported.
- The trading platform filed for bankruptcy and CEO Sam Bankman-Fried resigned on Friday.
Bankrupt cryptocurrency exchange FTX has been investigating unusual transactions after analysts claimed hundreds of millions of dollars worth of funds were withdrawn in a possible hack, the Financial Times reported.
More than $260 million worth of crypto assets have been withdrawn from the platform, analysts estimate, the newspaper said.
Ryne Miller, general counsel of FTX, said in tweets reposted by the company’s Twitter account: “Investigating anomalies with wallet movements related to consolidation of remaining ftx on exchanges – unclear facts as other movements are not clear. We will share more information as soon as we have it.
“Following the Chapter 11 bankruptcy filings, FTX US and FTX.com have initiated proactive measures to transfer all digital assets to [offline] Save. This process was accelerated [Friday] evening — to mitigate the damage of observing unauthorized transactions.”
—Ryne Miller (@_Ryne_Miller) November 12, 2022
Meanwhile, Reuters reported on Saturday that at least $1 billion of a total of $10 billion in client funds transferred by Sam Bankman-Fried, FTX’s founder and chief executive until he resigned on Friday, from the exchange platform to the Its sister company Alameda Research was now missing. The news agency cited two sources who worked at FTX until this week.
Bankman-Fried shared documents with other FTX executives last week showing the missing funds, the sources told Reuters, adding that she provided an analysis of the financial situation.
He told Reuters in text messages that he “disagrees with the characterization” of the $10 billion transfer and said “we did not transfer secretly.” He added: “We had internal labels mixed up and misread it.”
He also responded to Reuters with “???” when asked about the missing funds.
FTX, once valued at more than $30 billion, filed for Chapter 11 bankruptcy on Friday and Bankman-Fried stepped down as CEO after the company failed to secure a bailout deal.
Alameda Research, part of the FTX group along with 130 other companies, is included in the bankruptcy.
Bankman-Fried apologized Thursday via a message on Twitter and said he “disappointed twice.”
He he tweeted: “Poor internal labeling of bank accounts meant I didn’t get a sense of the user margin. I thought it was much lower.”
Last week, Coindesk reported that Alameda had a significantly large amount of illiquid FTX Tokens (FTT) on its balance sheet, leading to the belief that it lacked sufficient liquidity.
The trading platform was hit by about $5 billion in withdrawal requests last weekend, forcing it to suspend them. Bankman-Fried tried but failed in its efforts to be bailed out by the likes of Binance or Kraken.
FTX did not immediately respond to a request for comment from Insider.