FTX Hack: $4 Million Worth of ETH Associated with Bankrupt Crypto Empire Starts Moving

Read about the recent movement of $4 million worth of ETH associated with the FTX hack after the company's bankruptcy. Explore the details of the hacking incident and the ongoing legal proceedings surrounding FTX founder Sam Bankman-Fried.

Posted 7 months ago in Security


Image description: Visual representation of cybersecurity threat for a news article.

FTX was hacked in November 2022, hours after the global crypto empire declared bankruptcy and its founder Sam Bankman-Fried stepped down from running the company.

Accounts tied to FTX and FTX US were drained on Nov. 11, 2022, mere hours after the company filed for bankruptcy and founder Sam Bankman-Fried resigned from the crypto empire he ran. The attacker took over $600 million worth of ether at the time.

In a since-deleted tweet, the then FTX general counsel Ryne Miller said the exchange was taking “precautionary steps” to secure funds from other FTX wallets. John J. Ray III, the CEO and Chief Restructuring Officer of the FTX Debtors, which handles the FTX bankruptcy proceedings, later said that $323 million in various tokens were hacked from its international exchange and $90m from its US platform, as per reports. The attacker(s) who made off with the funds was(were) never identified.

Some 21,500 ETH, worth $27 million at the time, were converted into the stablecoin DAI a few days after the hack. Another 288,000 ETH remained in some of the addresses affiliated with the attacker.

Saturday’s transactions come days before Bankman-Fried goes on trial in the U.S. over fraud and conspiracy to commit fraud charges filed by federal prosecutors last December. Bankman-Fried has pleaded not guilty to all charges, though other former FTX and Alameda Research executives have pleaded guilty; some are expected to testify against their former boss.

UPDATE (Sept. 29, 13:42 UTC): An earlier version incorrectly said the THORChain protocol masks addresses.

Last updated 10/1/2023, 12:33:39 PM

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