More than 1 billion in customer funds have vanished from
Software

More than $1 billion in customer funds have vanished from the accounts of bankrupt crypto exchange FTX

Earlier this week, cryptocurrency exchange FTX filed for bankruptcy and its CEO, Sam Bankman-Fried, resigned. It has now been revealed that $1-2 billion in client funds have disappeared from crypto exchange accounts.

    Image Source: REUTERS/Dado Ruvic

Image Source: REUTERS/Dado Ruvic

According to the source, Bankman-Fried transferred $10 billion in FTX client funds to the accounts of his firm Alameda Research, which is a subsidiary of the crypto exchange. Currently, industry regulators like the US Department of Justice and the Securities and Exchange Commission are investigating the activities of companies and evaluating how the cryptocurrency exchange has disposed of customer funds.

The report states that a significant part of the funds transferred to Alameda simply disappeared, and according to various estimates, the size of the loss could be up to $2 billion. However, former FTX CEO Bankman-Fried did not confirm this information.

Earlier this week it was also revealed that more than $600 million in cryptocurrency disappeared from the wallets of FTX exchange users. Later, the platform administration reported a hack and the discovery of malicious code in their application. According to preliminary information, the hack affected not only the international version of FTX.com, but also the American FTX US. According to some members of the cryptocurrency community, people from Bankman-Fried’s inner circle could be involved in hacking the platform.

About the author

Robbie Elmers

Robbie Elmers is a staff writer for Tech News Space, covering software, applications and services.

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