Embattled cryptocurrency exchange FTX has recently reported a significant loss of $415 million due to a hack by cybercriminals. The firm, which filed for chapter 11 bankruptcy, disclosed this unfortunate news to its customers and stakeholders. Despite identifying $5.5 billion in liquid assets, including cash, crypto assets, and securities, $323 million from FTX.com and $90 million from the FTX US exchange were stolen through unauthorized third-party transfers post the bankruptcy filing on November 11, 2022.
In addition to the theft from FTX, $2 million was also taken from Alameda Research, a sister company and crypto trader/hedge fund co-founded by FTX’s Sam Bankman-Fried. This latest incident comes on the heels of a previous theft of $477 million shortly before the firm’s collapse. Bankman-Fried himself is facing criminal charges, including wire fraud, commodities fraud, securities fraud, money laundering, and campaign finance violations, which could potentially result in a lengthy jail term.
Despite the assumption of an external intrusion, cybersecurity expert Ilia Kolochenko suggested that multiple hypotheses should be considered, including a genuine data breach, embezzlement disguised as a breach, or a breach facilitated by malicious insiders. He stressed the importance of a thorough investigation by an independent cybersecurity firm to determine the true cause of the $415 million heist.
In light of these developments, it is evident that the cryptocurrency industry remains vulnerable to cyber threats and internal vulnerabilities. Investors and stakeholders must exercise caution and remain vigilant in protecting their assets in this ever-evolving landscape.