FTX is asking other exchanges to help secure and return lost funds


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FTX called on fellow cryptocurrency exchanges for help Sunday, noting that funds withdrawn from the stricken exchange are being transferred to other entities through intermediary wallets.

The now bankrupt company, led by new FTX Group CEO John J. Ray III, told her counterparts to “take all measures” necessary to secure the funds so they could be returned to the estate overseeing FTX’s bankruptcy.

FTX has not explicitly stated that the funds were stolen but transferred from FTX Global “without authorization”. The company also did not specify the wallet addresses the funds were linked to or the exchanges they were transferred to.

Illegal funds were in question taken from FTX a day after the company filed for Chapter 11 bankruptcy in Delaware. The value of the hack was about $650 million, according to ZachXBTa pseudonymous blockchain investigator, Widely trusted by the DeFi community.

Part of the money taken from FTX has been transferred to two wallets, according to ZachXBT, one in Solana And the last day Ethereum.

Some of the cryptocurrencies were later linked to other blockchains, including Binance Smart ChainAnd the ribbedAnd the AvalancheAccording to the blockchain explorers of the respective networks.

The missing FTX-linked Ethereum wallet held 98% of its roughly $258 million balance on Ethereum as of Sunday, according to DeBank. It held 200,735 Ethereum (ETH) and 8,184.9 Pax Gold (PAXG) tokens, worth about $238 million and $14 million, respectively. He also holds a balance of 20 other altcoins with amounts less than $100.

While the majority of the wallet balance was held on Ethereum, it also held $1.7 million in Binance Smart Chain, mostly in the form of the DAI stablecoin and about $4 million held in Avalanche concentrated almost entirely in Tether, another stablecoin.

Partial refunds can be made with the help of other exchanges. In August, Binance froze Funds worth $450,000 were stolen from Curve Finance, which is about 83% of the $570,000 lost from Ethereum.

In April, Binance was also able to recover a portion of the stolen funds in what was subsequently done Identifies To be an attack by the North Korean hacking cell Lazarus Group, the group stole $622 million from Axie Infinity’s Ronin network. Binance managed to get $5.8 million distributed across 86 different accounts.

FTX did not immediately respond to requests for comment Decrypt.

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