FTX Reveals $415 Million Of Crypto Was Hacked

January 19, 2023 9:49 pm Comments

The bankrupted crypto exchange FTX just revealed to the public that it had around $415 million worth of crypto that was hacked.

This obviously makes the financial situation of FTX even more unstable as this will make it harder for the exchange to payout customer withdrawals.

Previously, the exchange has reported that it had recovered around $5 billion worth of liquidity after its bankruptcy declaration that could be used to recover some of its customer funds.

However, the amount still falls short of the total amount that is owed which means that most will be unable to get the full value of their assets back.

Whether or not the exchange will be able to recover from its collapse is still uncertain and its former CEO & founder SBF is still released on bail.

Yahoo reports:

“We are making progress in our efforts to maximize recoveries, and it has taken a Herculean investigative effort from our team to uncover this preliminary information,” Ray said in the statement.

The crypto assets recovered to date include $685 million in Solana, $529 million in FTX’s proprietary FTT token and $268 million in bitcoin, based on crypto prices on Nov. 11, 2022. Solana, which was lauded by Bankman-Fried, lost most of its value in 2022.

During FTX’s initial investigation into hacks of its system, it uncovered a November asset seizure by the Securities Commission of the Bahamas, which led to a dispute between FTX’s U.S.-based bankruptcy team and Bahamian regulators.

The two sides settled their differences in January, and Ray said on Tuesday that the Bahamian government was holding $426 million for creditors.

As a result of the bankruptcy process, there have been detailed financial reports that breakdown all of FTX’s financial assets.

So far, the data shows that there are a bunch of assets that could be used to return money back to debtors and that includes hundreds of millions of dollars of real estate in the Bahamas.

This was real estate where SBF had bought and lived on which shows that customer funds were most likely inappropriately used for personal interests.

Despite this, SBF is maintaining the stance that he did not commit fraud although other business partners had already pleaded guilty.

At the moment, the new CEO of FTX, John Ray, is continuing these efforts to recover as much liquidity as possible.

CNBC concludes:

“We are making important progress in our efforts to maximize recoveries, and it has taken a Herculean investigative effort from our team to uncover this preliminary information,” said John Ray, who is acting as CEO at FTX during the restructuring, in Tuesday’s statement.

Despite separating liquid from illiquid tokens, the presentation included $529 million worth of FTX’s self-issued token, FTT, under the exchange’s “liquid” assets. FTT has lost over 90% of its value since early November.

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