Hundreds of millions of dollars in funds were mysteriously siphoned out of the collapsing crypto exchange FTX on Friday, in what company executives have referred to as a potential hacking incident. Already a company in a spectacular state of financial and reputational free fall, the once well-respected and heavily promoted cryptocurrency exchange issued a statement Friday that it was looking into a barrage of “abnormal” asset transfers sweeping through accounts. Subsequent analysis seemed to suggest that more than half a billion may have been stolen. The chaos started late Friday when FTX account holders began taking to Twitter to allege that their funds had disappeared. At 11:52 p.m., an admin for the exchange’s Telegram page posted the following statement:
Ftx has been hacked. All funds seem to be gone.
FTX apps are malware. Delete them…
Not long afterward, Ryne Miller, the company’s general counsel, tweeted: “Investigating abnormalities with wallet movements related to the consolidation of ftx balances across exchanges – unclear facts as other movements not clear. Will share more info as soon as we have it.”