FTX Hack: Over $600 Million Transferred Out Of FTX Wallets

Crypto exchange FTX is witnessing millions of funds flowing out of FTX wallets. Over $600 million in abnormal transfers have been reported in just a few hours, with some withdrawals being swapped from Tether to DAI. Also, StETH Solana, BNB, LINK, AVAX, MATIC, and other tokens are reportedly being withdrawn by drainer. The exploiter is swapping all crypto assets to DAI and ETH, which can’t be frozen.

FTX Community Chat admin dropped a message in the Telegram group saying that FTX has been hacked and FTX apps are malware. It warned users to delete the app and don’t go on the FTX website as it might download Trojans. However, it is not clear if the admin has resigned or not.

$600 Million Outflows From FTX Wallets

A large amount of funds started moving out of FTX and FTX US wallets to a single wallet suddenly on November 12, which was suspected as the start of the bankruptcy process. However, on-chain data and reports further suggested that FTX wallets have been hacked and exploiters have taken insider help to gain root access.

Foobar confirmed that somebody sent an on-chain message to the recipient account with 4byte selector “0x3d24a1ff”, which is the hash of the function name “Rug Pull All.” Some claims this is an insider job as an update was initiated with the motive to leak all private keys. Users are requested to not update or install the FTX app.

FTX US General Counsel Ryne Miller in a tweet said:

“Investigating abnormalities with wallet movements related to consolidation of ftx balances across exchanges – unclear facts as other movements not clear. Will share more info as soon as we have it.”

On-chain data indicates that funds were transferred from FTX and sold through DEX. Currently,UNI, stETH, 1INCH, WBTC, SUSHI, YFI, and LDO with addresses starting with 0x59ab are sold. Other tokens including PAXG, LINK, MATIC, AAVE, SNX, SHIB, and APE are still held.

In addition, FTX has 166 million US dollars of funds transferred to the address starting with 0xd801, including SRM, MATIC, CHZ, DYDX, BAND, MANA, ENS, CEL, HT, GRT, GALA, CRV, and other tokens.

Moreover, many FTX users are also reporting that they are seeing $0 balances in their FTX.com and FTX US wallets.

FTX Filed Chapter 11 Bankruptcy

Meanwhile, FTX crypto exchange already filed for Chapter 11 bankruptcy. Sam Bankman-Fried resigned as CEO and named restructuring expert John J. Ray III as the new CEO.

FTX’s new CEO John J. Ray III announced consultant Alvarez & Marsal and law firm Sullivan and Cromwell as advisors for restructuring FTX.

The crypto market continues to be under pressure as the total market cap fell over 3% in the last 24 hours.