$1 billion of FTX customer funds have vanished, Reuters reported

Crypto exchange FTX appears to have been hacked, rumors state that attackers stole $600 million drained from the company’s wallets.

Crypto exchange FTX is recommending users to delete FTX apps and avoid using its website, a circumstance that refutes the rumors that the rumors of a $600 million crypto heist.

The owners of several wallets of the crypto exchange are also reporting that the have been emptied, experts also reported that FTX’s API were not available.

The company General Counsel Ryne Miller confirmed the hack on the official Telegram channel.

Miller later announced that FTX US and FTX [dot] com started moving all digital assets to cold storage as a precautionary measure to mitigate the hack.

Miller also confirmed that the company investigated suspicious wallet transactions.

The crypto exchange filed for bankruptcy on Friday after a large number of customer withdrawals earlier this week.

“According to on-chain data, various Ethereum tokens, as well as Solana and Binance Smart Chain tokens have exited FTX’s official wallets and moved to decentralized exchanges like 1inch. Both FTX and FTX US appear to be affected.” reported Coin Desk.

According to the Reuters, which cited two people familiar with the matter, at least $1 billion of customer funds have vanished from the collapsed crypto exchange.

“The exchange’s founder Sam Bankman-Fried secretly transferred $10 billion of customer funds from FTX to Bankman-Fried’s trading company Alameda Research, the people told Reuters.” reported the Reuters.

“A large portion of that total has since disappeared, they said. One source put the missing amount at about $1.7 billion. The other said the gap was between $1 billion and $2 billion.”

The two people revealed that the losses were reported in the records that FTX founder Sam Bankman-Fried shared with other senior executives last Sunday.

Bankman-Fried told Reuters that he “disagreed with the characterization” of the $10 billion transfer.

“We didn’t secretly transfer,” he said. “We had confusing internal labeling and misread it,” he added.

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Pierluigi Paganini

(SecurityAffairs – hacking, cryptocurrency)

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Pierluigi Paganini

Pierluigi Paganini is member of the ENISA (European Union Agency for Network and Information Security) Threat Landscape Stakeholder Group and Cyber G7 Group, he is also a Security Evangelist, Security Analyst and Freelance Writer. Editor-in-Chief at "Cyber Defense Magazine", Pierluigi is a cyber security expert with over 20 years experience in the field, he is Certified Ethical Hacker at EC Council in London. The passion for writing and a strong belief that security is founded on sharing and awareness led Pierluigi to find the security blog "Security Affairs" recently named a Top National Security Resource for US. Pierluigi is a member of the "The Hacker News" team and he is a writer for some major publications in the field such as Cyber War Zone, ICTTF, Infosec Island, Infosec Institute, The Hacker News Magazine and for many other Security magazines. Author of the Books "The Deep Dark Web" and “Digital Virtual Currency and Bitcoin”.