FTX Asks Other Exchanges to Help Secure and Return Lost Funds

FTX called on fellow crypto exchanges for help on Sunday, pointing out that funds diverted from the crashed exchange are transferred to other entities through intermediary wallets.

The now-bankrupt company, led by new FTX Group CEO John J. Ray III, has asked its peers to “take all steps” necessary to secure the funds so they can be returned to the estate. overseeing the bankruptcy of FTX.

FTX did not categorically state that the funds were stolen, but rather transferred from FTX Global “without authorization”. The company also did not specify which wallet addresses the funds were linked to or which exchanges they were transferred to.

The ill-gotten funds in question were taken from FTX a day after the company filed for Chapter 11 bankruptcy in the state of Delaware. The value of the hack was around $650 million, according to ZachXBTa pseudonymous blockchain detective, widely approved by the DeFi community.

Part of the funds taken from FTX were transferred to two wallets, according to ZachXBT, one on Solana and another on Ethereum.

Some of the cryptocurrencies were later linked to other blockchains, including Binance Smart Chain, Polygonand avalancheaccording to blockchain explorers for the respective networks.

The Ethereum wallet linked to FTX’s missing funds held 98% of its roughly $258 million balance on Ethereum as of Sunday, according to DeBank. He held 200,735 Ethereum (ETH) tokens and 8,184.9 Pax Gold (PAXG) tokens, worth around $238 million and $14 million respectively. He also had a balance of 20 other altcoins amounting to less than $100.

While the majority of the wallet balance was held on Ethereum, it also had $1.7 million held on Binance Smart Chain, mostly in the form of stablecoin DAI and nearly $4 million held on Avalanche concentrated almost entirely in Tether. , another stablecoin.

Funds may be partially recovered using other scholarships. In August, Binance frozen $450,000 in funds stolen from Curve Finance, which was approximately 83% of the approximately $570,000 in Ethereum lost.

In April, Binance was also able to recover some of the stolen funds in what was later determined being an attack by North Korean hacking cell Lazarus Group, where the group stole $622 million from Axie Infinity’s Ronin network. Binance was able to recover $5.8 million spread across 86 different accounts.

FTX did not immediately respond to requests for comment from Decrypt.

Stay up to date with crypto news, get daily updates in your inbox.

Leave a Comment

Your email address will not be published. Required fields are marked *