Mere hours after filing for Chapter 11 bankruptcy protection, FTX’s fraught situation worsened dramatically. The crypto exchange claimed it was hacked late Friday night after millions of dollars worth of digital assets were taken from FTX wallets despite having been frozen earlier in the day. CoinDesk estimates that the missing money amounts to more than $600,000,000, although it is not clear how much.
“FTX has been hacked. FTX apps are malware.” the company posted on its official Telegram account. It urged customers not to visit the FTX website and to delete its apps from their smartphones. Following the announcement, FTX General Counsel Ryne Miller said the company was moving all of its digital assets offline “to mitigate damage upon observing unauthorized transactions.”

As CoinDesk points out, some crypto community members have speculated the funds may have been withdrawn by someone from FTX founder Sam Bankman-Fried’s inner circle. Bankman-Fried hasn’t commented on the incident. The missing millions of dollars are not the only ones that have disappeared from FTX since before the company filed for bankruptcy. According to Reuters, Bankman-Fried “secretly transferred” $10 billion from the crypto exchange to his trading company Alameda Research. According to reports, he disclosed the financial gap to FTX executives just days before Binance announced that it was abandoning its bid to save the firm.
“We didn’t secretly transfer,” he told Reuters. “We had confusing internal labeling and misread it.” When asked about the missing funds, he reportedly replied “???” On Saturday, Bankman-Fred also denied reports he had flown to Argentina after he resigned as CEO of FTX.All products recommended by Engadget are selected by our editorial team, independent of our parent company. Affiliate links may be included in some of our stories. Affiliate commissions may be earned if you buy through one of these links. All prices are correct as of the time they were published.

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