FTX says $415 million of crypto was hacked from its accounts

Last week, bankrupt crypto exchange FTX announced it recovered over $5 billion in cash and crypto assets. The lawyer representing the company disclosed the $5 billion includes cash and digital assets. What wasn’t disclosed at the time was there are still significant shortfalls at both its international and U.S. crypto exchanges due to a hack.

In an announcement on Tuesday, FTX disclosed that the recovered crypto assets also include $415 million worth of crypto that was hacked from the exchange’s accounts. The amount represents a sizable chunk of the identified assets FTX is trying to recover. The bankrupt crypto exchange said that $323 million in crypto had been hacked from FTX’s international exchange and $90 million had been hacked from its U.S. exchange since it filed for bankruptcy on Nov. 11.

In a news release, FTX said: “With respect to FTX.com, the FTX Debtors have identified approximately $1.6 billion of digital assets associated with FTX.com as of the Petition Date, $323 million of which was subject to unauthorized third-party transfers post-petition, $426 million of which was transferred to cold storage under the control of The Securities Commission of The Bahamas, $742 million of which is in cold storage under the control of the FTX Debtors, and $121 million of which is pending transfer to cold storage under the control of the FTX Debtors. The assets identified as of the Petition Date are substantially less than the aggregate third-party customer balances suggested by the electronic ledger for FTX.com”

FTX filed for bankruptcy in November of last year. According to multiple court documents, bankrupt crypto exchange FTX currently owed a total of about $3.1 billion to more than 1 million people, making it “impracticable” to contact each victim. The U.S. government has launched a website for FTX victims to communicate with law enforcement.

Two weeks ago, the disgraced FTX founder Bankman-Fried, 30, pleaded not guilty to federal fraud charges to eight federal fraud charges related to the collapse of the now-bankrupt crypto exchange FTX. His trial is set for October 2.

Bankman-Fried first came into the spotlight in 2020 after he donated a whopping $5.2 million to Joe Biden’s campaign, making him the second-biggest donor.

Bankman-Fried founded FTX in 2019 with his co-founder Gary Wang. The Bahamas-based crypto exchange FTX offers derivatives products like futures and options as well as spot trading. Once an unknown startup, FTX has become a key player in the crypto space, rivaling the likes of Coinbase and Binance.