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Jan 18,2023

FTX claims that US$415 million in cryptocurrency has been stolen

Since filing for bankruptcy on November 11, the bankrupt cryptocurrency exchange has lost around US$415 million in cryptocurrencies to hacks.

Important Facts

According to the company disclosure to creditors, an "unauthorized third party" took over US$323 million from FTX international exchange and US$90 million from FTX US. Alameda Research, the brokerage division of the exchange with headquarters in the Bahamas, had another US$2 million stolen from it.

The sum that was stolen represents a portion of the US$5.5 billion in liquid assets that FTX designated for recovery. These assets include US$1.7 billion in cash, US$3.5 billion in cryptocurrencies, including FTX Token (FTT), and US$300 million in liquid securities.

The exchange was hacked and lost more than US$372 million, according to the new FTX CEO John Ray, who made the announcement a few days after FTX declared bankruptcy in November.

On November 11, FTX filed for Chapter 11 bankruptcy in the United States, shocking the industry after it was discovered that there had been inadequate transparency on liquidity and customer funds had been improperly used.

Sam Bankman-Fried, the founder and former CEO of FTX, has been charged with eight offences, including conspiracy to commit money laundering and wire fraud. Earlier this month, Bankman-Fried entered a not-guilty plea to the accusation of fraud.

The US$2.1 billion Binance got in BUSD and FTT when it sold its share in FTX in Q3, 2021, is being considered as a clawback by FTX advisers. Changpeng Zhao, CEO of Binance, has asserted that the business will continue to be stable even after making a US$2.1 billion return.

According to its bankruptcy declaration in November, the bankrupt exchange owes its 50 largest creditors a total of around US$3.1 billion. Additionally, FTX disclosed that the company has over 100,000 debtors.

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