The cryptocurrency exchange FTX Collapse, which is now bankrupt, said that an authorized hack could have taken about $600 million from the exchange’s wallets.
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Binance Comes For Rescue
The attack happened late Friday night after FTX had filed for bankruptcy.
“Someone broke into FTX. Malware is FTX apps. Please get rid of them. Chat is open. Don’t visit the FTX site because it could download Trojans, “wrote a member of the FTX Support Telegram group who was in charge of accounts.
After a few hours, FTX General Counsel Ryne Miller tweeted that the cryptocurrency exchange was doing “everything possible to secure all assets, no matter where they are.”
Binance CEO Changpeng Zhao announced an “Industry recovery fund” to reduce the “cascading negative effects of FTX.” This fund will help projects with a solid foundation and structure through a liquidity crisis. The CEO said that details about the fund should be coming soon.
FTX Is Being Checked for Security
According to a report by Bloomberg, FTX’s problems aren’t over yet. The Security and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) are looking into the FTX exchange to see if it mishandled users’ funds and the relationship between FTX.com and FTX.US. Also, the Department of Justice (DOJ) has put the organization under close watch and is looking into the possibility of fraud.
Also, police and the securities regulator in the Bahamas, where Sam Bankman-FTX Fried’s is based, are looking into the possibility of illegal activity.
Crypto Chaos Continues
Twitter isn’t quiet, and it’s been the best place to get real-time news about the crazy FTX saga. Even Elon Musk, the CEO of Twitter, noticed this when he said, “FTX meltdown/ransack being tracked in real-time on Twitter.”
Over the weekend, people used #FTX to show how angry and unhappy they were with the exchange. Mark Cuban and other well-known people expressed their disappointment.
In a Twitter poll, internet mogul Kim Dotcom asked if former billionaire founder Sam Bankman-Fried would spend 1000 years in prison or be let go because he gave money to Biden. Out of 67,312 votes, 86% said Bankman-Fried would be let go because he gave money to Biden.
Conclusion
The ongoing chaos at FTX has made the whole crypto market uneasy. According to data from CoinGecko, the price of FTX’s native token, FTT, fell by 93.3% last week, going from $22 to $1.49. Bitcoin fell to around 15k, its lowest point for the year.
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