FTX: Collapsed Crypto Exchange Says $415M Has Been Hacked

Sam Bankman-Fried, the former CEO of FTX, has resigned.

Hackers stole around $415 million (£338 million) of bitcoin from the defunct cryptocurrency exchange FTX.

Since the business declared bankruptcy, about $323 million has been stolen from its worldwide exchange and $90 million from its US platform, according to FTX CEO.

Sam Bankman-Fried, co-founder of FTX, has been accused of stealing billions of dollars from FTX consumers in order to pay off debts at his other firm, Alameda Research.

Mr Bankman-Fried has pleaded not guilty to the accusations of fraud.

The business informed a Delaware bankruptcy judge last week that it had retrieved more than $5 billion in assets.

FTX supplied more information on Tuesday, stating that it had received $1.7 billion in cash, $3.5 billion in so-called liquid cryptocurrencies, and $300 million in liquid securities.

The phrase liquid in finance refers to an asset that may be quickly turned into cash without impacting its value.

The corporation also reported large deficits on its worldwide and US stock markets.

However, no estimate of overall liabilities was provided.

On November 11, FTX, which was valued at $32 billion a year earlier, filed for bankruptcy protection. Customers’ funds totaled $8 billion, according to estimates.

Mr. Bankman-Fried, who co-founded FTX in 2019, was one of the cryptocurrency industry’s most visible personalities, known for his political connections, celebrity endorsements, and bailouts of other faltering businesses.

He was detained in the Bahamas, where he lived and where FTX was located, in December.

Mr Bankman-Fried was extradited to the United States and released on bail of $250 million. His bail conditions prompted him to wear an electronic monitoring device and he was primarily restricted to his parents’ Stanford University law professors’ California house.

Federal prosecutors claimed in a press conference last month that the platform’s breakdown, which enabled clients to purchase and trade digital tokens, was the product of “premeditated fraud.”

Prosecutors accused Mr. Bankman-Fried of abusing FTX customer cash to pay down debts and make additional investments at his other firm, Alameda.

Eight criminal allegations were made, including wire fraud, money laundering, and campaign financing offences. Mr. Bankman-Fried was also sued by financial regulators. He has refuted the charges.

Later that day, Mr. Bankman-Fried repeated, “FTX US is solvent as it has always been.”

“I did not deliberately conduct any fraud,” he stated in an interview with BBC News before his detention. I don’t believe I cheated anyone. That was not something I wanted to happen. “I wasn’t nearly as capable as I thought I was.”

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