Sam Bankman-Fried resigned as CEO of FTX on Friday.

Crypto exchange FTX is investigating abnormal transactions of customer funds after a potential hack.
Analysts said hundreds of millions were withdrawn from FTX, the Financial Times reported.
The trading platform filed for bankruptcy and CEO Sam Bankman-Fried resigned on Friday.

Bankrupt crypto exchange platform FTX was examining abnormal transactions after analysts claimed funds worth hundreds of millions of dollars were withdrawn in a potential hack, the Financial Times reported. 

More than $260 million worth of crypto assets were withdrawn from the platform, analysts estimate, the newspaper reported. 

Ryne Miller, FTX general counsel, said in tweets retweeted by the company’s Twitter account: “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.

“Following the Chapter 11 bankruptcy filings, FTX US and FTX.com initiated precautionary steps to move all digital assets to [offline] storage. Process was expedited this [Friday] evening — to mitigate damage upon observing unauthorized transactions.”

—Ryne Miller (@_Ryne_Miller) November 12, 2022

 

Meanwhile, Reuters reported on Saturday that at least $1 billion of customer funds totaling $10 billion moved by Sam Bankman-Fried, FTX founder and its CEO until he resigned on Friday, from the exchange platform to its sister company Alameda Research was now missing. The news agency cited two sources who worked at FTX until this week.

Bankman-Fried shared documents with other FTX executives last week which showed the missing funds, the sources told Reuters, adding that it gave a breakdown of the financial situation.  

He told Reuters in text messages that he “disagreed with the characterization” of transferring $10 billion and said “we didn’t secretly transfer.” He added: “We had confusing internal labeling and misread it.”

He also responded to Reuters with “???” when he was asked about the missing funds.

FTX, once valued at more than $30 billion, filed for Chapter 11 bankruptcy on Friday and Bankman-Fried resigned as CEO after the company failed to secure a rescue deal.

Alameda Research, part of the FTX group along with 130 other companies, is included in the bankruptcy. 

Bankman-Fried apologized on Thursday via a Twitter thread and said he “f***** up twice.”

He tweeted: “A poor internal labeling of bank-related accounts meant that I was substantially off on my sense of users’ margin. I thought it was …read more

Source:: Business Insider

      

FTX is investigating ‘abnormal transactions’ of customer funds after the crypto platform filed for bankruptcy: report

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