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FTX & FTX-US Hacked! A Pre-Planned Insider’s Move? Millions of Users’ Funds Flow Out

12 Nov, 20222 min readOther
FTX & FTX-US Hacked! A Pre-Planned Insider’s Move? Millions of Users’ Funds Flow Out

The FTX-drama is getting bitter and bitter every new day, impacting the crypto markets adversely. After the firm filed for bankruptcy, a price movement of nearly $400 million was witnessed late Friday night. As per the reports, various Ethereum, Solana, and Binance SmartChain-based tokens were stolen and moved to a decentralized exchange.

The FTX-US General counsel Ryne Miller addressed the current situation tweeted but the crypto verse awaits the official FTX statement on the hack.

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. @FTX_Official— Ryne Miller (@_Ryne_Miller) November 12, 2022

Meanwhile, many FTX holders reported their balance in their wallets to turn into ‘0’. Many speculate the involvement of an insider where-in the drained funds are being swapped into Tether & DAI. Moreover, a swap of stETH worth nearly $44 million to ETH was also carried out eating a huge slippage and an on-chain message ‘Rug Pull All’ was also sent to the recipient account with a 4byte selector.

Hundreds of millions of dollars are now flowing out of FTX wallets, some speculate liquidators but it's late on a friday night, not typical times for such rapid heavy movements. Some withdrawals are being swapped from Tether to DAI. Hack or insider actions? $26 million here — foobar (@0xfoobar) November 12, 2022

Additionally, nearly $90 million flew to a Solana-based wallet and thousands of Wormhole ETH are getting bridged from Solana into the Ethereum wallet at the moment. The hackers appear to have used a second address for the other altcoins which are smaller in number.

In such a scenario, if Ryne Miller says “he doesn’t know why the funds are moving”, it sounds fishier as if the current move is a part of a liquidation order, he would have definitely been informed.

The FTX & FTX-US apps on mobile are prompting an “App Update Confirmation” message, which is likely to seek root access to further private keys. Therefore, it is advisable to delete the app or carry out any activities on the website till the issue gets settled.

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