FTX is Reported to Have Been Hacked as Officials Detect Unusual Wallet Activity

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Last Updated on November 13, 2022 by Bitfinsider

According to reports, FTX experienced a number of fraudulent transactions over the weekend, prompting users and analysts to warn against engaging with its mobile application or website.

The 11th of November saw around $266,3 million worth of outflows from FTX wallets, according to the analytics firm Nansen. $73.4 million was purportedly stolen from FTX US, a different firm operating in the United States.

Martin Lee, a Nansen data journalist, reports that net outflows from FTX and FTX US totaled $659 million overnight, indicating that the purported attack may have grown in scale. This accounts for almost one-third of the wallets’ net outflows during the past week.

FTX US general counsel Ryne Miller stated on November 12 that the transactions were prohibited and that all remaining cryptocurrencies had been put to cold storage as a precaution.

A blog article published on November 12 by blockchain forensics firm Elliptic reveals that different coins on Ethereum, BNB Smart Chain, and Avalanche have been withdrawn. However, they stated that around $477 million of the $663 million withdrawn is thought to have been stolen, while the remaining is considered to have been relocated to secure storage by FTX.

An administrator for FTX’s Telegram channel stated that the exchange was compromised and advised customers to avoid using the FTX website due to potential security flaws. “Avoid the ftx website, as it may contain Trojans,” stated community administrator Rey.

Twitter users said that FTX clients received SMS messages and emails asking them to log in to the app and website, which have since been infected with a Trojan.

Nick Percoco, chief security officer of Kraken, later Tweeted that the company was aware of the user’s identity but did not disclose any other details publicly.

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