Over $1 billion in customer money has disappeared from cryptocurrency exchange FTX due to “suspicious transactions”. This was reported by sources to the press agency Reuters. Founder Sam Bankman-Fried is said to have secretly transferred $10 billion from clients to his Alameda investment firm. Much of it has now disappeared without a trace.
It is still unclear whether (and by whom) the money was stolen. FTX claims that “unauthorized transactions” were made. For this reason, FTX takes digital money offline. According to FTX consultant Ryne Miller, that money goes to so-called cryptowallets that aren’t connected to the internet. This should provide protection against hackers.
Analysts say hundreds of millions of dollars have since been withdrawn from the collapsed cryptocurrency exchange. FTX, meanwhile, is working with the police to resolve the issue and secure all funds.
It was announced on Friday that the US cryptocurrency exchange is filing for a payment deferral, a preliminary stage to bankruptcy. Bankman-Fried also resigned. The CEO lives in the Bahamas and he was rumored to have left for South America. Press Agency Reuters he had asked Bankman-Fried if he had left for Argentina, to which he replied with a text message: “no”.
The problems at FTX started last week. The cryptocurrency exchange then began to falter due to the fall in value of FTX’s currency, the FTT. As a result, the stock market has been facing liquidity problems. Competing cryptocurrency exchange Binance announced its intention to acquire FTX, but withdrew that offer after due diligence.
For US Treasury Secretary Janet Yellen, the collapse of the cryptocurrency empire is confirmation that the digital currency market requires “very careful regulation”. “It shows the weaknesses of this entire industry,” Yellen said in an interview with Bloomberg News.
