FTX Hacked? There have been a lot of rumors lately. FTX officials finally have come out confirming on their official Telegram channel that the rumors about the exchange getting hacked is true. They further instructed their users to delete FTX apps and avoid using their websites. This already is one of the greatest disaster in the financial industry, hundreds of million dollars getting drained from the famous cryptocurrency exchange hours after they filed for bankruptcy.
Later on this Friday, Over $600 million vanished from FTX’s crypto wallets. Soon, FTX officially instructed its users to delete their apps and avoid using their website due to this mass destruction.
Their administrator in the FTX Support Telegram chat wrote, “FTX has been hacked. FTX apps are malware. Delete them. Chat is open. Don’t go on FTX site as it might download Trojans”. Later, this message was pinned by their General Counsel Ryne Miller.
A few hours later, Ryne Miller, FTX’s General Counsel tweeted explaining that FTX US and FTC.com has been moving its digital assets to cold storage following the Friday’s bankruptcy.
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.— Ryne Miller (@_Ryne_Miller) November 12, 2022
FTX API’s appeared to be down being unresponsive whereas many of the FTX US and FTX.com wallet holders reported their account balances to be $0 in their wallets. As per the on-chain data that is available, various tokens including Ethereum tokens, Solana and Binance Smart Chain Token exited FTX wallets and were moved to decentralized exchanges like 1inch. As it seems, FTX US and FTX.com both appear to be effected.
These mysterious transfers occurred on the same day as FTX filed for Chapter 11 bankruptcy protection in US, them losing millions of dollars in the user’s funds. There have been a lot of speculations, many believing that instead of this being an external attack, this could be an insider’s work.
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Other Exchanges after the FTX Hack
With this disaster, people are now investigating into the exchanges more deeply which actually revealed a lot more about others as well. The Singapore-based crypto.com recently admitted that they sent over $400 million in Ethereum to the wrong account ‘by accident’. Their CEO, Kris Marszalek tweeted explaining that the transfer was done three weeks ago of 320,000 ETH to one of the corporate accounts of its competitor Gate.io whereas it was meant to be transferred to one of their own offline or “cold” wallets.
The funds have been recovered but has disturbed the user’s trust on the exchange platform as they fear if something similar would happen to them comparing to what FTX users had to go through. Binance’s CEO, Changpeng Zhao, tweeted commenting on the exchange platform’s transparency towards its users.
If an exchange have to move large amounts of crypto before or after they demonstrate their wallet addresses, it is a clear sign of problems. Stay away. Stay #SAFU. 🙏— CZ 🔶 Binance (@cz_binance) November 13, 2022
The crypto exchanges have been through a lot of hurdles as seen in the past, the recent disaster with FTX has indeed impacted their reliability. Unfortunately it now solely is on the users to evaluate the best option for themselves, the exchange platform that they can put their trust and their money into.
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