FTX Halts Trading and Secures Assets After Suspected $477 Million Hack
FTX removes trading and withdrawal functions while moving digital assets to cold storage following a massive suspected hack. The bankrupt exchange is coordinating with law enforcement as investigators track the stolen funds.
FTX halts all trading and withdrawal functions as it moves identified digital assets to a secure cold wallet custodian. The bankrupt crypto exchange takes this emergency action to mitigate damage after detecting unauthorized transactions shortly after its Chapter 11 bankruptcy filing.
Blockchain analytics firm Elliptic reports that hackers drain approximately $477 million from FTX wallets, while the remaining funds transfer to secure storage by the company. The suspected thieves rapidly convert the stolen stablecoins and tokens into ether and dai on decentralized exchanges to avoid asset seizure.
New CEO John Ray states that FTX coordinates with law enforcement and relevant regulators globally to address the breach. The exchange makes every effort to secure all remaining assets as investigators continue to analyze the highly suspicious transaction patterns.