US Starts Investigation into $372M FTX Hack

US Starts Investigation into 2M FTX Hack

The authorities in the United States have launched an investigation into the hack, which swept in 372 million USD after the hack of the leading stock exchange FTX, according to reports from Bloomberg.

The hack took place on November 11th, a few hours after FTX filed for Chapter 11 bankruptcy, and continued until the early morning of November 12th. Massive amounts of crypto were transferred from FTX and FTX US wallets.

The Justice Department’s National Cryptocurrency Enforcement team is currently investigating the case in cooperation with Manhattan authorities handling the arrest of SBF in the Bahamas.

Conversion of coins after the hack

According to blockchain analytics company Elliptic, this was a tactic commonly seen in massive attacks, as money stolen from FTX wallets was traded for Ethereum via decentralized exchanges.

On November 20, Chainalysis stated that the stolen cryptocurrency platform money was “on the move” and had transitioned from Ethereum to Bitcoin.

Also read: FTX, SBF slammed with class action; Users last chance for a refund?

Chainalysis also denied online claims that the money was delivered to the Bahamas’ Securities and Exchange Commission.

It said,

“Reports that the funds stolen from FTX were sent to the Securities Commission of the Bahamas are incorrect. Some funds were stolen and other funds were sent to regulators, funds were linked from ETH to BTC, likely mixed before a withdrawal attempt.”

FTX hack unfolds

What is supposed to be an hour after the hack, General Counsel of FTX, Ryan Miller took to his Twitter and said that FTX was investigating abnormalities with wallet movements. He later took to Telegram to announce that FTX has been hacked.

“FTX has been hacked. FTX apps are malware. Delete them. Chat is open. Do not access the FTX website as it may download trojans.

wrote the Telegram channel of FTX.

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It remains unclear whether the FTX hack was the hand of someone from the firm or whether the implosion provided an opportunity for hackers to take over. The penalty for this hack can be imprisonment of up to 10 years.

Shourya mainly reports on cryptocurrency prices, NFTs and Metaverse. She graduated and continued her education in journalism, always wanting to be in the business field. Contact her at [email protected] or tweet at Shourya_Jha7

The content presented may include the author’s personal opinion and is subject to market conditions. Do market research before investing in cryptocurrencies. The author or publication has no responsibility for your personal financial loss.

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