FTX & Authorities Thoroughly Investigate $477M Theft

Key Insights

• FTX got attacked shortly after it filed for bankruptcy 
• The actual figure of the massive heist is not yet ascertained
• Investigations of the heist have begun with a spotlight on the movement of the fund.

It is no longer news that the crypto exchange, FTX, has gone bankrupt. Its officials confirmed that unknown individuals used unauthorized transactions to drain users’ funds from their wallets.  

Experts consider the FTX weekend incident as a massive heist. It was reported that nearly half a billion worth of funds were pulled out of the wallet. This withdrawal comes shortly after the news went viral that the crypto exchange is collapsing. 

Since blockchain technology enables the tracking of funds and other activities on its smart contract— blockchain analysis firms, authorities, and officials of FTX have announced a Swift investigation. 

FTX and Authorities Investigates The Massive Heist

John Ray, the CEO, and Chief Restructuring Officer of FTX, released a statement to confirm the heist. He said on Sunday some unauthorized access had occurred to certain assets. Shortly after, they noticed suspicious activities on the cryptocurrency exchange wallet. However, John Ray did not disclose the details of the “unauthorized access.”

Furthermore, several blockchain analysis firms have begun investigations into the theft. According to Elliptic, about $477 million was stolen. TRM Lab says about $338 million was stolen. 

In a report by Bloomberg, it said the FTX.com balance that FTX shared with its investors the day before its bankruptcy showed $9 billion in Liability. The report also shows $900 million in liquid assets.  

Investigations and close monitoring have since begun. Andy Greenberg tweeted that the hunt for the FTX thieves has begun. 

Experts and industry players say barely 24 hours after the heist, most of the funds have been scattered into a handful of crypto addresses. Furthermore, law enforcement agents and tracing firms are watching every angle. They said it would be difficult for the thieves to cash out the funds into fiat. 

Similarly, the spotlight remains on its staff and owners as most investigations point out insider interference in the heist. Most importantly, the investigation is centered around the movement of the funds. 

Chris Janczewski said,

We’re definitely watching the movements of these funds.”

He is the head of investigations at TRM Labs and a former special agent at the IRS’s criminal investigations division. Interestingly, an Elliptic analysis investigation shows that about $220 million of funds stolen were quickly traded through decentralized exchanges (DEX). 

Conclusion 

Last week, the bankruptcy news of FTX went viral. Not long after, some unknown individuals had unauthorized access and succeeded in a massive heist. 

Furthermore, investigations have begun— the searchlight is on every angle, including the owners and staff of FTX. 

Experts and industry players say it would be difficult for the thieves to cash out the stolen funds and trade them on a centralized exchange.