FTX Liquidation Team Consolidates Client Funds in Cold Storage

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On the morning of November 12, rumors appeared abouthacking of FTX, which is in the process of bankruptcy, as the exchange began to rapidly lose client funds. However, FTX's legal counsel explained this as "precautionary measures."

According to observations of observers on the Eherscan network,Solscan and Bscscan, on the morning of November 12, suspicious activity and unconventional large transactions related to FTX wallets were recorded. Almost immediately, millions of dollars began to be withdrawn from the exchange, and the balances of some users were reset to zero.

Warnings appeared on social networksthat hackers took advantage of the opportunity and are moving assets to their wallets. Since a number of key employees, including those responsible for network security, left the exchange team amid bankruptcy, part of the crypto community interpreted the event as a successful hacker attack on FTX.

In his first comments, the mainFTX legal counsel Ryne Miller said the exchange "has begun to investigate an anomaly involving withdrawals from FTX balances." A few hours later, in a follow-up message to the community, Miller said:

“After filing bankruptcy documents forChapter 11, we have taken precautions to move all digital assets to cold storage. The process was expedited last night to reduce potential damage from unauthorized transactions."

The FTX cryptocurrency exchange published in itsTwitter screenshot of the announcement that it is filing for bankruptcy - the company will begin the process of reviewing and monetizing assets for the benefit of all stakeholders.