- Financial regulator and Law Enforcement of Bahamas conducting a deep investigation on FTX collapse.
- FTX was among the top three crypto exchanges globally.
FTX US General Counsel Ryne Miller also informed about the hack in his Twitter post.
John Ray quoted in his statement that the company is in “the process of removing trading and withdrawal functionality and moving as many digital assets as can be identified to a new cold wallet custodian.”
Ray added, “the exchange is worried about the hack that occurred and is ready to coordinate with law enforcement and relevant regulators.”
Elliptic, a Blockchain analysis firm, noted in its Twitter post that FTX lost $477 million in funds due to a hack.
It is likely believed that FTX is working hard to recover the lost founder in the hack.
FTX is facing many problems as, according to a local news outlet in the Bahamas, FTX is being investigated for criminal misconduct in the country.
Some reliable sources also state that Sam Bankman Fried, Gary Wang, and Nishad Singh, director of engineering, are under the supervision of Bahamas authorities for FTX collapse.
Many specialists alleged Sam for transferring users’ money valued at $10 billion to Alameda Research, the company operated by his girlfriend, Caroline Ellison.
The globally popular crypto exchange FTX filed for bankruptcy under Chapter 11 of the United States Bankruptcy Code in the District of Delaware on 11 November 2022.
Sam Bankman Fried Ex.The Chief Executive Officer of FTX was the one to initiate the bankruptcy procedure, and after a few hours of filing, Sam resigned from the post of CEO.
According to the news source, John Ray III occupied the vacant position of Chief Executive Officer of FTX Exchange and held the responsibility of Chief Restructuring Officer.
Although John’s appointment in FTX was not good, as Security and Exchange Commission said John was involved in insider trading and traded stocks of three companies while working as the director in those firms.
Bloomberg reported today that the balance sheet of FTX has a hole, and funds of approximately 1 billion users are missing.
According to the reports, the biggest crypto exchange will dump all FTT token holdings in the market.
This ultimately created chaos in the market as the investors started selling their FTT holdings. The digital asset fell quickly by the face and is currently trading at the market price of $2.5, representing an over 80% value loss in the last few days.
According to data from CoinMarketCap, writing this article, Bitcoin is trading at $16,765.36 with a 24-hour trading volume of $39,481,390,525.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing
Source: https://www.thecoinrepublic.com/2022/11/14/is-ftx-ready-for-477-million-theft-investigation/