FTX Hack Sees Abnormal Outflows of $600 Million, Many Holders Report $0 Balance

FTX Telegram admins have confirmed that the exchange was hacked late Friday night. The Telegram admins urged users to not visit the FTX website as it “might download Trojans” which could affect their portfolio. Moreover, the hack saw mysterious outflows of nearly $600 million only hours after it filed for Chapter 11 bankruptcy.

In addition, many users have reported $0 in balance in their FTX.com and FTX US wallets.

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“FTX has been hacked. FTX apps are malware. Delete them. Chat is open. Don’t go on FTX site as it might download Trojans,” wrote an admin in the FTX Support Telegram chat.

However, the bad actor is yet to be identified after mysteriously siphoning $600 million in a day. Also, it is not known if the misappropriation of funds was initiated by an insider or an outsider at this moment.

FTX US general counsel Ryne Miller tweeted that the firm has been moving its digital assets to cold storage due to the bankruptcy.

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“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,” he tweeted.

Also Read: How Much Trouble is FTX & SBF In Now?

The Mystery of The FTX Hack

Source: Wallpaperflare.com

The overall cryptocurrency community is suspicious that the hack might be an insider job. However, the claims on social media remain to be speculations as there’s no concrete proof of the hacker’s identity.

Self-proclaimed rug-pull detective ‘Zachxbt‘ tweeted, “Multiple former FTX employees confirmed to me that they do not recognize these transfers”. You can go through the Twitter thread below.

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In addition, FatMan, who pointed out Terra founder Do Kwon’s wrongdoings during the TerraUST and LUNA crash tweeted, “A verified source has confirmed that no one from FTX requested Tether to freeze or reverse today’s ‘unauthorized transactions’ during the alleged hack.”

However, it is not confirmed if the FTX hack is an inside job. Also, social media claims should be taken with a grain of salt. We will have to wait and watch who the hacker might be only after an investigation is complete.