Crypto

FTX says $415 million worth of crypto has been hacked

Jan 17 (Reuters) – Bankrupt crypto exchange FTX said in a report to creditors on Tuesday that around $415 million in cryptocurrency had been stolen as a result of hacks.

Some $323 million worth of crypto has been hacked from FTX’s international exchange and $90 million has been hacked from its US exchange since it filed for bankruptcy on Nov. 11, CEO John Ray said in a statement on Tuesday. separate statement.

FTX founder Sam Bankman-Fried has been accused of stealing billions of dollars from FTX clients to pay off debt incurred by his crypto-focused hedge fund, Alameda Research. Bankman-Fried pleaded not guilty to fraud charges.

FTX told a Delaware bankruptcy judge last week that it had recovered more than $5 billion in crypto, cash and liquid securities, nine weeks after filing for bankruptcy.

The company provided additional details on Tuesday, saying it had recovered $1.7 billion in cash, $3.5 billion in liquid cryptocurrency and $300 million in liquid securities.

FTX did not provide an estimate of total liabilities, but said it has identified significant shortfalls in its international and US crypto exchanges.

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

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 November 11, 2022. Solana, which was hailed 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 Bahamian Securities Commission, which led to a dispute between the US-based bankruptcy team. of FTX and Bahamian regulators.

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

Bahamian Prime Minister Philip Davis referenced the dispute during a Tuesday event at the Atlantic Council in Washington, saying Ray’s team had “returned” and agreed that the seizure of Bahamian assets “was appropriate and may have saved the day for many investors in FTX.”

Reporting by Dietrich Knauth in New York and Jasper Ward in Washington Editing by Noeleen Walder, Amy Stevens and Matthew Lewis

Our standards: The Thomson Reuters Trust Principles.

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