However, it appears that the scale of the alleged theft is bigger than what was initially reported by Elliptic. According to CoinDesk, the total amount stolen from FTX’s crypto wallets could be well over $600 million. The timing of the hack is rather interesting and has fanned all forms of speculations and conspiracies on social media.
FTX just released this message on their Telegram channel.
It looks like they are claiming it is a hack and the FTX wallets are being looted tonight.
There is a bankruptcy freeze in place. The bankruptcy trustee says he is not involved in what is happening tonight. pic.twitter.com/VjVNfHL91p
— Wall Street Silver (@WallStreetSilv) November 12, 2022
Bankman-Fried reportedly moved customer funds away from FTX, in secret, of which anywhere between $1 billion and $2 billion is now unaccounted for. The former FTX CEO is alleged to have set up a “backdoor” in FTX’s book-keeping system that allowed him to play with the financial records of the company without alerting anyone inside or outside the company, according to Reuters.
In his defense, Bankman-Fried told Reuters, “We didn’t secretly transfer,” and that the whole fuss around missing $10 billion in customer funds was a result of “confusing internal labeling.” California’s Department of Financial Protection has launched an investigation into FTX. In the Bahamas, where FTX is based, the Bahamas Securities Commission is also working with the local police to assess allegations of criminal misconduct (via Fortune).
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