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Millions Missing from FTX Exchange
More than $370 million in funds is mysteriously missing from from the FTX exchange. The now bankrupt crypto firm is warning users to stay off its website fearing a hack.
The potential hack occurred Friday after FTX filed for bankruptcy. Ryne Miller, FTX US’s general counsel, said in a Saturday tweet that FTX and FTX US had started moving all digital assets to cold storage —crypto wallets that aren’t connected to the internet — after the filing.
A rival crypto exchange said Saturday it knew the identity of the alleged hacker and would help authorities in their investigation.
Some analysts have suggested the hacker could be FTX founder Sam Bankman-Fried himself, although the comments currently amount to speculation.
Kevin O’Leary Was Going to Help Bail FTX Out
Shark Tank star and venture capitalist Kevin O’Leary reportedly attempted to stem FTX’s liquidity problem before it filed for bankruptcy but was thwarted by by comments from U.S. Securities and Exchange Commission Chairman Gary Gensler.
According to O’Leary, he was receiving an influx of “inbound requests” from sovereign wealth and pension funds interested in helping fix FTX’s cash crunch. Bankman-Fried told O’Leary that FTX was looking for $8 billion.
As a deal was approaching, Gensler made a comment suggesting the crypto industry was “significantly non-compliant” and in need of more regulation.
“The minute that occurred, that was the end of any sovereign wealth fund’s interest,” said O’Leary. “There was no way to get that $8 billion onto the balance sheet of FTX with the regulators hovering overhead.”
