SECURITY

FTX loses funds! Multiple Twitter personalities warn that FTX App has been hacked, funds have been liquidated: Delete the app for security reasons.

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FTX loses funds! Multiple Twitter personalities warn that FTX App has been hacked, funds have been liquidated: Delete the app for security reasons.

Currently, it is unclear about the actual situation at FTX, updates will continue.

Large Amount of Suspicious Outbound Transactions, Hackers Traced and Marked with Traceable Tweet Thread

Starting from 10:47 on 11/12, @0xfoobar discovered millions of dollars' worth of assets flowing out of the FTX wallet in a fast and frequent manner, which was highly unusual; some withdrawn funds were even converted from USDT to DAI on decentralized exchanges. He suspected that these events were due to a hacker incident or internal misconduct. Some transactions even left behind messages of hatred.

The Ethereum address 0x59AB...32b, marked as "Heist," has assets worth $158 million. Looking at all on-chain assets, this address has accumulated $368 million in assets.

Additionally, some coins were transferred from 0xd801...969 to 0x97f9...E5c. Security firm PeckShield stated that the address 0xd801...969 appears to have received funds from Binance US, while 0x97f9...E5c is controlled by a multi-signature smart contract requiring multiple addresses to sign for execution, indicating a possible behavior of sheltering some funds.

On-chain data company @lookonchain has compiled a list of hacked funds here.

Community Urges Against App Updates, Avoiding Websites: Delete Apps Quickly

@0xfoobar warned that accepting app updates may trigger malicious code leading to losses, urging for immediate app deletion and to avoid visiting websites, suspecting that developer accounts may have been compromised.

Furthermore, Rey, an administrator on FTX's official Telegram channel, indicated that FTX was hacked, all funds seem to be gone, and these apps are harmful, advising to delete them and not to visit FTX's website.

Conspiracy Theories: Shifting Blame to Hackers, Internal Theft

VC Adam Cochran believes that due to the need for "private keys, website root level, and app release keys," this might be an internal hacker incident:

Some even speculate that this is to shift part of the blame to hackers to evade legal and public scrutiny:

FTX Only Retweets Tweets from Legal Advisors

Regarding this incident, FTX official only retweeted a post from FTX legal advisor Ryne Miller stating:

"Investigating abnormal activities in these wallets, information will be disclosed soon."

Subsequently, FTX legal advisor Ryne Miller acknowledged unauthorized transactions:

"In accordance with Chapter 11 bankruptcy procedures, funds from FTX US and FTX com have started moving to cold storage as a precautionary measure.

This process is now accelerating to mitigate the damage caused by unauthorized transactions."

As Ryne Miller described it as unauthorized transactions, it is unclear whether they were external or internal actions.

Several former FTX employees have stated that they are unaware of these fund movements: