https://www.coindesk.com/business/2022/11/12/ftx-crypto-wallets-see-mysterious-late-night-outflows-totalling-more-than-380m/

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PlayIconNav
Crypto Prices CoinDesk Market Index
Business

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

FTX officials appeared to confirm rumors of a hack on Telegram,
instructing users to delete FTX apps and avoid its website.

By Cheyenne Ligon, Sam Reynolds, Sam Kessler, Nikhilesh De, Reilly
Decker
AccessTimeIconNov 12, 2022 at 4:20 a.m. UTC
Updated Nov 12, 2022 at 10:27 p.m. UTC
    
FTX bought the naming rights to the Miami Heat arena in March 2021.
(Danny Nelson/CoinDesk)

FTX bought the naming rights to the Miami Heat arena in March 2021.
(Danny Nelson/CoinDesk archives)

    
 
CoinDesk - Unknown

Cheyenne Ligon

Cheyenne Ligon is a CoinDesk news reporter with a focus on crypto
regulation and policy. She has no significant crypto holdings.

 

Follow @cheyenneligon on Twitter

 
CoinDesk - Unknown

Sam Reynolds

 

Follow @thesamreynolds on Twitter

 
CoinDesk - Unknown

Sam Kessler

Sam is a reporter at CoinDesk focused on decentralized technology,
DeFi and DAOs. He owns ETH, BTC and MATIC.

 

Follow @skesslr on Twitter

 
CoinDesk - Unknown

Nikhilesh De

Nikhilesh De is CoinDesk's managing editor for global policy and
regulation. He owns marginal amounts of bitcoin and ether.

 

Follow @nikhileshde on Twitter

CoinDesk - Unknown

Reilly Decker

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.

"FTX has been hacked. FTX apps are malware. Delete them. Chat is
open. Don't go on FTX site as it might download Trojans," wrote an
account administrator in the FTX Support Telegram chat. The message
was pinned by FTX General Counsel Ryne Miller.

Read more: FTX CEO John Ray Confirms Late-Night Hack, Says Company Is
Working With Law Enforcement

Hours later, Miller disclosed in a tweet that FTX US and FTX.com had
been moving all their digital assets to cold storage because of the
Friday bankruptcy. "Process was expedited this evening - to mitigate
damage upon observing unauthorized transactions," he said.

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.

Read more: Bankman-Fried's Cabal of Roommates in the Bahamas Ran His
Crypto Empire - and Dated. Other Employees Have Lots of Questions

On Twitter, members of the cryptocurrency community quickly began to
speculate that the outflows could have been coordinated by a member
of Bankman-Fried's inner circle, pointing out that the simultaneous
and sophisticated hacks of FTX and FTX US are indicative of a
potential inside job. Twitter sleuth ZachXBT tweeted Friday night
that "multiple former FTX employees confirmed to me that they do not
recognize these transfers."

Around midnight Eastern time, FTX's login portal was unavailable
(though the site was still online) giving users a 503 error when they
attempted to log in. A 503 error happens when the server is
unavailable, commonly because it's down for maintenance or
unavailable for access.

Read more: FTX Employees Worldwide Learned of Bankruptcy Along With
the Public

UPDATE (Nov. 12, 2022, 06:00 UTC): Adds updates and details
throughout.

UPDATE (Nov. 12, 2022, 14:21 UTC): Hours after the publication of
this article, FTX said it had expedited the move of its remaining
funds to cold wallets. Click here for more.

UPDATE (Nov. 12, 2022, 15:25 UTC): Adds context in first paragraph
and revisions throughout.


---------------------------------------------------------------------
Read more about
regulationsFTXFTX USSam Bankman-FriedHack
---------------------------------------------------------------------
 
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0.04%
---------------------------------------------------------------------
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DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do
not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets
and the future of money, CoinDesk is a media outlet that strives for
the highest journalistic standards and abides by a strict set of
editorial policies. CoinDesk is an independent operating subsidiary
of Digital Currency Group, which invests in cryptocurrencies and
blockchain startups. As part of their compensation, certain CoinDesk
employees, including editorial employees, may receive exposure to DCG
equity in the form of stock appreciation rights, which vest over a
multi-year period. CoinDesk journalists are not allowed to purchase
stock outright in DCG.

 
CoinDesk - Unknown

Cheyenne Ligon

Cheyenne Ligon is a CoinDesk news reporter with a focus on crypto
regulation and policy. She has no significant crypto holdings.

 

Follow @cheyenneligon on Twitter

 
CoinDesk - Unknown

Sam Reynolds

 

Follow @thesamreynolds on Twitter

 
CoinDesk - Unknown

Sam Kessler

Sam is a reporter at CoinDesk focused on decentralized technology,
DeFi and DAOs. He owns ETH, BTC and MATIC.

 

Follow @skesslr on Twitter

 
CoinDesk - Unknown

Nikhilesh De

Nikhilesh De is CoinDesk's managing editor for global policy and
regulation. He owns marginal amounts of bitcoin and ether.

 

Follow @nikhileshde on Twitter

CoinDesk - Unknown

Reilly Decker

 
CoinDesk - Unknown

Cheyenne Ligon

Cheyenne Ligon is a CoinDesk news reporter with a focus on crypto
regulation and policy. She has no significant crypto holdings.

 

Follow @cheyenneligon on Twitter

 
CoinDesk - Unknown

Sam Reynolds

 

Follow @thesamreynolds on Twitter

 
CoinDesk - Unknown

Sam Kessler

Sam is a reporter at CoinDesk focused on decentralized technology,
DeFi and DAOs. He owns ETH, BTC and MATIC.

 

Follow @skesslr on Twitter

 
CoinDesk - Unknown

Nikhilesh De

Nikhilesh De is CoinDesk's managing editor for global policy and
regulation. He owns marginal amounts of bitcoin and ether.

 

Follow @nikhileshde on Twitter

CoinDesk - Unknown

Reilly Decker

---------------------------------------------------------------------
 
Logo of BTCBTC$16,798.62
0.63%
 
Logo of ETHETH$1,258.15
1.70%
 
Logo of BNBBNB$282.53
2.35%
 
Logo of XRPXRP$0.36573002
4.21%
 
Logo of BUSDBUSD$0.99978035
0.04%
---------------------------------------------------------------------
View All Prices
Trending
1
CDCROP: Crypto Exchange FTX Grapples With 'Liquidity Crunch' As
Binance Deal Fades (Leon Neal/Getty Images)
Policy
 
FTX CEO John Ray Confirms Late-Night Hack, Says Company Is Working
With Law Enforcement
Nov 12, 2022
2
CDCROP: The HASH Podcast Graphic
CoinDesk Podcast Network
 
THE HASH: Headlines: The Fall of FTX- Top Stories of the Week
11-07-22
Nov 12, 2022
3
Annotated chart of the 162-asset CoinDesk Market Index (CMI) over the
course of the FTX and Alameda saga. (CoinDesk Indices and Research/
Sage D. Young)
Markets
 
The Epic Collapse of Sam Bankman-Fried's FTX Exchange: A Crypto
Markets Timeline
Nov 12, 2022
4
(Staff/Getty Images, modified by CoinDesk)
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The leader in news and information on cryptocurrency, digital assets
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