FTX forewarns exchanges to freeze stolen funds to prevent hacker cashing out FTX forewarns exchanges to freeze stolen funds to prevent hacker cashing out
Exchanges cautioned to be on high alert in preparation to freeze assets should the hacker attempt to cash out.
1 min read
Updated: Nov. 20, 2022 at 9:13 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
FTX announced on Nov. 20 that exchanges should remain alert regarding unauthorized fund transfers from FTX Global and related debtors on Nov. 11.
The transfers sent out were through intermediate wallets and FTX warned exchanges to take all measures to ensure the unauthorized funds be seized and returned to the bankruptcy estate.
(1/2) Exchanges should be aware that certain funds transferred from FTX Global and related debtors without authorization on 11/11/22 are being transferred to them through intermediate wallets.
— FTX (@FTX_Official) November 20, 2022
Prior to the FTX announcement, blockchain data platform, Chainalysis tweeted out a thread explaining that funds stolen from FTX were on the move and that exchanges should be ready to freeze them if the hacker decides to cash out.
2/ Reports that the funds stolen from FTX were actually sent to the Securities Commission of The Bahamas are incorrect. Some funds were stolen, and other funds were sent to the regulators.
— Chainalysis (@chainalysis) November 20, 2022
Chainalysis clarified that reports suggesting FTX’s stolen funds were sent to the Securities Commission of The Bahamas (SCB) were false. The Chainalysis team verified that some of the funds had indeed been stolen but some funds were sent to the regulators.
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Josh O'Sullivan
Josh has been writing for a decade and is passionate about mainstream crypto adoption, bringing positive financial change to the masses through crypto and decentralized finance as a whole.
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FTX is a cryptocurrency derivatives exchange that offers futures, leveraged tokens and OTC trading.
Chainalysis
Chainalysis builds trust in blockchains between people, businesses and governments.
FTX
FTX is a defunct cryptocurrency exchange, currently in bankruptcy proceedings, that was founded by Sam Bankman-Fried and Zixiao “Gary” Wang in May 2019.