Bankrupt crypto exchange FTX said in a report to creditors on Tuesday that about US$415 million (about RM1.8 billion) in cryptocurrency had been stolen as a result of hacks. Some $323 million in crypto had been hacked from FTX’s international exchange and US$90 million had been hacked from its US exchange since it filed for bankruptcy on Nov 11, CEO John Ray said in a separate statement on Tuesday.
However, that includes “unauthorized third-party transfers” of $323 million out of FTX.com (the international business) and $90 million out of FTX US, the company said in a statement. Another $2 million of hedge fund Alameda Research’s crypto was also stolen. The missing crypto could be connected to a hack of FTX’s systems that was uncovered shortly after the company collapsed in November. At the time, the stolen crypto was valued at $477 million, according to blockchain analytics firm Elliptic.
FTX filed for bankruptcy after a wave of withdrawals crippled the exchange and sister hedge fund Alameda. Founder and ex-CEO Sam Bankman-Fried was indicted by federal prosecutors on fraud and money laundering charges in December. Bankman-Fried pleaded not guilty to the charges in January, and he’s released on a $250 million bond ahead of his trial, which is set for October.
The 20-page presentation from FTX’s lawyers and advisers provides a breakdown of FTX’s assets and where they are looking for potential recoveries that could be returned to debtors. That includes hundreds of millions of dollars’ worth of property in the Bahamas, where Bankman-Fried lived and ran the company.
“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’s acting as CEO at FTX during the restructuring, in Tuesday’s statement.
“I think we’ll leave that to the lawyers,” Zhao said, when asked if he was prepared to send the money back. “I think our legal team is perfectly capable of handling it.” The 20-page presentation from FTX’s lawyers and advisors provides a breakdown of FTX’s assets and where they are looking for potential recoveries that could be returned to debtors. That includes hundreds of millions of dollars worth of property in the Bahamas, where Bankman-Fried lived and ran the company.
“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.
