Considered one of the world’s leading cryptocurrency exchanges, FTX is currently bankrupt. On Tuesday, the firm said more than $400 million worth of cryptocurrencies had been stolen.
Reporting to creditors
Former cryptocurrency giant FTX has filed for bankruptcy. Its fall is one of the defining events of 2022 in the tech world. In a report to creditors, the company revealed that about $415 million in crypto was stolen in the hack. Specifically, its new CEO, John Ray, claimed that $323 million had been stolen from the company’s international stock exchange and $90 million from its US stock exchange. Two million worth of cryptocurrencies from hedge fund Alameda Research were also stolen through “unauthorized third-party transfers.”
“We have made significant progress in our efforts to maximize recovery”
FTX lawyers and advisors recently updated the total amount of liquid assets recoverable. According to information published by CNBC, the amount is $5.5 billion. “We have made significant progress in our maximum recovery efforts and it has taken a Herculean investigative effort for our team to uncover this preliminary information,” John Ray said in a statement.
Sudden monetary crisis
Concerns about this mysterious hack arose in November 2022 following the sudden financial crisis. Then FTX director Sam Bankman-Freed Bankman-Freed was forced to take stock. Then he retired. The US Securities and Exchange Commission accuses him of organizing a “grand” fraud, but Mr. Bankman-Fried denies this.