FTX says $415 million in crypto was hacked

According to Reuters, the formerly bankrupt crypto exchange FTX claimed unknown hackers had stolen about $415 million in cryptocurrency in response to a report that FTX gave to creditors on Tuesday.

Although FTX has filed for Chapter 11 bankruptcy, It still has to recover the money lost to the demand of massive investors. FTX has said that it had recovered over $5 billion. However, for the rest, the excuse FTX offers is a hacker attack.

We do not the details of the hackers, nor how it was hacked. Since FTX declared bankruptcy, the exchange has owed investors a lot of money. The founder and former CEO of FTX, Sam Bankman-Fried, aka SBF, has been arrested in the Bahamas on December 12, 2022. (2300 GMT). According to Reuters, the crisis at FTX came after SBF secretly transferred $ 10 billion of FTX client money to Alameda Research, his proprietary trading firm based in Hong Kong. At least $1 billion of client money disappeared. However, the American federal magistrate on December 2022 ordered Sam Bankman-Fried released on a $250 million bond. The bond was signed by his parents and secured by their home in Palo Alto, California.

Bankman-Fried has pleaded not guilty to fraud charges, Bankman-Fried has not had access to FTX records since he resigned as the CEO of FTX last year. However, Bankman-Fried claimed that FTX has more than enough money to repay U.S. customers, whom he says are owed between $181 million and $497 million based on his “best guess.” Until now, FTX did not provide an estimate of the amount owed to FTX's U.S. or international customers. And the company also did not formally comment on SBFs opinion yet.

FTX provided some additional details about its recovery efforts on Tuesday, saying it had recovered $1.7 billion in cash, $3.5 billion in liquid cryptocurrency, and $300 million in liquid securities.

Conclusion

Whether or not it is true that FTX was hacked, it still has a responsibility to recover as much money as possible to calm market sentiment. After all, FTX and its former CEO Sam bankman-Fried went bust, not because of hackers, but because of FTX itself and the fraudulent behavior of its former CEO Sam Bankman-Fried.