'FTX Has Been Hacked': Crypto Disaster Worsens as Exchange Sees Mysterious Outflows Exceeding $600M

Coin Desk ^

[BenLurkin]

The collapse of FTX, already one of the most spectacular disasters in financial history, worsened as hundreds of millions of dollars were drained from the cryptocurrency exchange hours after it filed for bankruptcy.

More than $600 million was siphoned from FTX's crypto wallets late Friday. Soon after, FTX stated in its official Telegram channel that it had been compromised, instructing users not to install any new upgrades and to delete all FTX apps.

Many FTX wallet holders reported $0 balances in their FTX.com and FTX US wallets. FTX’s API appeared to be down, which could account for this. According to on-chain data, various Ethereum tokens as well as Solana and Binance Smart Chain tokens exited FTX's official wallets and moved to decentralized exchanges like 1inch. Both FTX and FTX US appear to be affected.

The transfers occurred on the same day that the firm filed for Chapter 11 bankruptcy protection in the U.S. after apparently losing – or misappropriating – billions of dollars in user funds. Suspicions – which are conjecture at this point – circulated online about whether, rather than an outside attack, someone inside the company might've been responsible.

[gw-ington]

Recently, there was a cover story article about Sam Bankman-Fried in one of the top business magazines, excitedly praising him as the "Warren Buffett of Cryptocurrency." That implied Bankman-Fried would one day create a Berkshire Hathaway-like $2/3 Trillion empire just like Buffett.

So that cover-story article alone probably tempted lots of naive speculators and traders to pour their money into Bankman-Fried's FTX cryptocurrency exchange, thinking they'll all make huge cryptocurrency fortunes just like many Berkshire Hathaway investors made fortunes.

Reports now say that FTX customer assets of up to $2 Billion have totally "disappeared" and "vanished" into thin air. Nobody knows where they went. So if you wanted to buy in on the Sam Bankman-Fried FTX cryptocurrency gravy train, sorry, you're too late!

[SecondAmendment]

The modern finance business model is to create an commodity, the build layers upon layers of derivative commodities from it, ie a Ponzi Scheme.

[Wilhelm Tell]

I’m not a goldbug - it’s not something I invest in but I have never had a gold or silver coin evaporate. The land I own hasn’t evaporated either.

[PAR35]

Well, if you bought $1000 in FTT a year ago, you’d still have over $50 left on paper, but it would be frozen and you couldn’t actually get your $50+ back.

[ruination]

The vast majority of losses in crypto have happened specifically because of a centralized crypto establishment run by a Jewish, I mean Keebler, individual.

From Mt. Gox to Celsius to FTX.

Bank man’s parents are lawyers at Stanford, specializing in ethics, LOL. His aunt works for the WEF.

[aMorePerfectUnion]

If YOU would like to be on a CRYPTO PING LIST, please pm me.

The Crypto Ping List covers the following:

Bitcoin
Ethereum
Other coins built on the Ethereum blockchain mining
etc.

Thanks! For it - or ag'in it, it'll be a wild ride.

[Basket_of_Deplorables]

“Fake currency is a scam and you’ve been ripped off.”

No, where you keep your crypto is critical. FTX TOS said you were actually loaning it to them, to invest as they see fit, in exchange for interest they pay you.

Then the pimply faced beta CEO loaned 10 Billion of it to his fugly girlfriend. She blew it all.

If you buy crypto and keep it in your own wallets, it’s good.

[aMorePerfectUnion]

One of the reasons I know crypto has value is that many people want to steal it.

+1

[aMorePerfectUnion]

it’s not something I invest in but I have never had a gold or silver coin evaporate.

I hear they get stolen or lost or confiscated sometimes...

[NWFree]

Tom Brady has suddenly decided to play another 10 years

[aMorePerfectUnion]

The land I own hasn’t evaporated either.

If you think you own it, try not paying your taxes...

[Pollard]

[ruination]

Bank man is not a pimply faced beta. That is all an act. He is a core part of the establishment that wants you and your children impoverished and raped.

[PGR88]

This is all the justification government needs to shut-down or heavily regulate all crypto currency - and also to justify launch of a central-bank digital currency.

Expect someone like Chuck Schumer or Liz Warren to lead the charge.

[NautiNurse]

Bankman created a back door into the software.

Until this is ruled out, Bankman would have to be the primary suspect.

[Red in Blue PA]

Their website is still up with no message about this. Looks like business as usual.

[Cowgirl of Justice]

I am not one to knock someone’s looks but she..... well....ummmm..... whew.

[Jumper]

Could the FTX meltdown have been a dirty ops by American Political/Intelligence with the goal of enriching the democrats, while damaging crypto assets, e.g., Bitcoin as a dual purpose dirty trick.

This kid operating with the wealth of a family that is considered the number two donar to the DNC; operating beyond the reach of US Law Enforcement. FTX was turned from a crypto exchange into a bank for all intents and purposes, by offering Interest on Assets. Then they leverage these assets, while taking profit on those trades. US Banks have to keep a certain amount of CA$H (not Crypto) on deposit. The USG backs the USG. No body but investors back crypto.

The real beneficiaries from tanking intensionally FTX was to enrich the political class in the US and to give all the World’s Banks and US investment portfolios yet another opportunity to buy up Bitcoin.

[ThePatriotsFlag]

Duh! Why would anybody fool with this stuff?

[upchuck]

Makes one glad for avoiding the digital currency madness.