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FTX reports missing $415 million in cryptocurrencies due to hacks

FTX informed creditors that it had lost approximately $415 million in cryptocurrencies due to hacks since declaring bankruptcy on November 11.

A few days after FTX declared bankruptcy in November, new CEO John Ray announced that the exchange had been hacked and had lost over $372 million.

According to the company, the missing funds include “unauthorized third-party transfers” of $323 million from FTX.com (the international business) and $90 million from FTX US. Another $2 million in cryptocurrency was stolen from hedge fund Alameda Research.

The hacked funds are part of the US$5.5 billion in liquid assets identified for recovery by FTX, which includes US$1.7 billion in cash, US$3.5 billion in cryptocurrencies (including FTX Token (FTT), and US$300 million in liquid securities.

FTX also stated that it had recovered more than $5 billion in cryptocurrency, cash, and liquid securities, but that significant shortfalls remained at both its international and US crypto exchanges. It said it had recovered $1.7 billion in cash, $3.5 billion in liquid cryptocurrency and $300 million in liquid securities.

Based on crypto prices on November 11, 2022, the recovered crypto assets include $685 million in Solana, $529 million in FTX’s proprietary FTT token, and $268 million in bitcoin. Solana, which Bankman-Fried praised, lost the majority of its value by 2022.

The sources for this piece include an article in Reuters.

IT World Canada Staff
IT World Canada Staffhttp://www.itworldcanada.com/
The online resource for Canadian Information Technology professionals.

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Jim Love, Chief Content Officer, IT World Canada

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