FTX Hacked, with around $600 Million Missing from Users

FTX said in its official Telegram channel that it had been hacked, advising users not to access the official FTX website and to delete the exchange's app as they may contain trojans, after more than $600 million in cryptocurrency was withdrawn from the exchange.

According to data on the chain, two exchanges - FTX and FTX US - were affected. Ethereum, Solana and Binance Smart Chain tokens left FTX's official wallets and moved to decentralised exchanges such as 1inch.

So far, some of the lost funds have been recovered, while $30 million worth of stolen USDTs have been promptly blocked by Tether.

Many FTX wallet holders are reporting that their FTX.com and FTX US wallets have a balance of $0. This may be due to the fact that the FTX API is down.

It is reported that technicians are already investigating the unexplained movement of funds. Exchange representatives will share more information as soon as details emerge.

Earlier FTX announced the start of bankruptcy proceedings under Article 11 of the US Bankruptcy Code. Along with the filing, FTX chief Sam Bankman-Fried stepped down as CEO. He will be replaced by John J Ray III.

The bankruptcy of FTX was a forced measure amid financial problems in the company. According to investigations, the FTX head's trading firm Alameda Research secretly received $10bn in funds from the exchange, secured by customer funds that were subsequently lost in risky trades.

When the information came to light, panicked exchange clients began withdrawing their funds, creating a liquidity crisis for FTX. The exchange then sought help from Binance to solve their problem in exchange for a full takeover of the company. However, Binance backed out of the deal due to an investigation launched by various financial regulators against FTX for misuse of client funds.