FTX Falls Victim To A Breach, Hackers Stealing Over $600M

Three days have passed since FTX was the target of a breach immediately after the crypto-exchange with headquarters in the Bahamas filed for chapter 11 bankruptcy. On November 12, the hacker stole more than $600M from the exchange’s wallets.

The rest was transferred by FTX officials in response to the suspicious fund drainage, making the actual exploit’s value close to $400 million. This information was quickly made public. Later on in the day, FTX General Counsel Ryne Miller disclosed:

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.

The same was confirmed by well-known on-chain sleuth Zachxbt on Twitter, who also provided addresses for both the white hat and black hat withdrawals.

More Than $330 Million Is Still Held By Hackers

A thorough report on the transactions involved in this multi-million dollar hack has been released by blockchain intelligence company Arkham Intelligence.

According to Arkham’s investigation, the initial recipient of the fraudulent funds dumped a sizable portion of the tokens, demonstrating a state of panic due to the cryptocurrency being lost to slippage.

The criminal then swapped the tokens utilising decentralised exchange aggregators like 1inch and DODO exchange in an effort to stop the slippage. After then, tiny lots of the switched tokens, worth between $1.73 million and $3.90 million, were sold by PAXG, LINK, and MATIC.

Related Reading | Ripple Gains Major Advantage In SEC Case

After Paxos blacklisted four of their addresses, the hacker tried to bridge from various networks. These efforts were fruitless, as Paxos eventually froze the nearly $20 million worth of funds.

The hacker currently owns seven cryptocurrencies worth a total of almost $339 million. $215 million in ETH, $48 million in DAI, $41 million in BNB, $7 million in DAI on BSC, $4 million in USDT, $3.8 million in MATIC, and $20 million in frozen PAXG are all represented in this transaction.

Mysterious Tweets From Sam Bankman-Fried.

The ex-crypto billionaire who founded this failed crypto empire has been tweeting some rather odd things lately. The Twitter community was initially perplexed, but some have since hypothesised that Sam Bankman-Fried’s wall’s scrambled words are an effort to deceive the Twitter bot into not noticing the tweets he deleted by maintaining a constant total of tweets.

Many false tweets may be spotted by users who scrolled down SBF’s Twitter account. Some of them implied that FTX was solvent and wasn’t experiencing liquidity concerns; each of them was afterwards removed.

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