Crypto-currency exchange FTX is seeing millions of funds flow out of FTX wallets. Nearly $600 million in abnormal transfers have been reported in a matter of hours, with some withdrawals being exchanged from Tether to DAI. Similarly, StETH Solana, BNB, LINK, AVAX, MATIC and other tokens were reportedly withdrawn by the hacker. The exploiter exchanges all crypto assets for DAI and ETH, which cannot be frozen.
The FTX Community Chat administrator posted a message in the Telegram group stating that FTX has been hacked and that FTX apps are malware. He warned users to delete the app and not to go to the FTX website, which could download Trojans. However, it is not clear whether the administrator has resigned or not.
600 million exits FTX wallets
A large amount of funds began exiting the FTX and FTX US portfolios into a single portfolio on November 12, which was suspected to be the beginning of the bankruptcy process. However, data and reports on the chain suggested that FTX wallets were hacked and that the exploiters took advantage of insider help to gain root access.
Foobar confirmed that someone sent an on-chain message to the receiving account with the 4-byte selector “0x3d24a1ff”, which is the hash of the function name “Rug Pull All“. Some claim that this is an insider job as an update was released with the intention of leaking all private keys. Users are advised not to update or install the FTX application.
Investigating abnormalities with wallet movements related to consolidation of ftx balances across exchanges – unclear facts as other movements not clear. Will share more info as soon as we have it. @FTX_Official
– Ryne Miller (@_Ryne_Miller) November 12, 2022
FTX US General Counsel Ryne Miller said in a tweet:
“We are investigating anomalies in portfolio movements related to consolidation of ftx balances across markets – facts are unclear as other movements are unclear. We will share more information as soon as we have it.”
The on-chain data indicates that funds have been transferred from FTX and sold via DEX. Currently, UNI, stETH, 1INCH, WBTC, SUSHI, YFI, and LDO with addresses starting with 0x59ab are sold. Other tokens, including PAXG, LINK, MATIC, AAVE, SNX, SHIB, and APE, are still held.
Please pay attention to the safety of your funds, a lot of funds transferred out from FTX and sold through DEX!
– Lookonchain (@lookonchain) November 12, 2022
In addition, FTX has US$166 million in funds transferred to the address starting with 0xd801, including SRM, MATIC, CHZ, DYDX, BAND, MANA, ENS, CEL, HT, GRT, GALA, CRV, and other tokens.
In addition, many FTX users are also reporting that they are seeing $0 balances in their FTX.com and FTX US wallets.
FTX filed for Chapter 11 bankruptcy
Meanwhile, crypto-currency exchange FTX has already filed for Chapter 11 bankruptcy. Sam Bankman-Fried has resigned as CEO and appointed restructuring expert John J. Ray III as the new CEO.
FTX’s new CEO, John J. Ray III, announced the appointment of consultant Alvarez & Marsal and the law firm Sullivan and Cromwell as advisors on the restructuring of FTX.
The crypto-currency market continues to be under pressure, with total market capitalization falling more than 3% in the past 24 hours.