FTX employees rumored to be behind $600 million potential hack

FTX and FTX US wallets have been affected in a potential hack that records over $600 million in tokens transferred by the exploiter. FTX US General Counsel Ryne Miller previously tweeted the wallet movements as “abnormal” and the facts and reasons were unclear to him or the FTX team.

In the following tweet, Ryne Miller claimed that the FTX team rushed precautions to move all digital assets to cold storage after recording some unauthorized transactions. Some believe former FTX developer Samuel Hyde is behind the hack.

Former FTX employees behind the hack

Experts on the chain observed millions in outflow from FTX and FTX US wallets, suspected to be the start of the bankruptcy process. However, FTX staff confirmed to ZachXBT that they do not recognize these withdrawals. Also, FTX Community Chat admin posted a message in the Telegram group saying that FTX has been hacked and FTX apps are malware. The administrator also encouraged users to delete the app and warned of possible Trojans on the FTX website.

FTX USA General Counsel Ryne Miller in a chirping claimed that unauthorized transactions observed by FTX led the team to expedite transfers from wallets. He pointed out that FTX US and FTX.com are required to move all digital assets into cold storage as a precaution as part of the Chapter 11 bankruptcy filings.

“Following the Chapter 11 bankruptcy filings – FTX US and FTX [dot] com initiated precautionary measures to move all digital assets to cold storage. The process was sped up tonight – to reduce damage from observing unauthorized transactions.”

Defi and NFT project founder Foobar claimed FTX advisor noticed that the black hat exploiters were withdrawing tokens and switching to ETH and DAI. He then took white hat actions to save some funds from unauthorized transactions. Furthermore, ZachXBT estimulates tthe black hat transfer to almost 450 million and the white hat rescue from multisig to almost 200 million so far.

Meanwhile, some claim that FTX employees are behind the exploit, particularly former FTX developer Samuel Hyde. While the motive is unclear, the action may have been due to a conflict with senior management earlier this year.

Varinder is a technical writer and editor, technology enthusiast and analytical thinker. Fascinated by Disruptive Technologies, he has shared his knowledge of Blockchain, Cryptocurrencies, Artificial Intelligence and the Internet of Things. He has been associated with the blockchain and cryptocurrency industry for a significant period of time and currently covers all the latest updates and developments in the crypto industry.

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