US FTX general counsel Ryan Miller said in a tweet on Saturday that the exchange is speeding up the process of moving all digital assets into cold storage “to mitigate the damage of observing unauthorized transactions.” Cold storage refers to crypto wallets that are not connected to the internet to protect them from hackers. Late Friday, Miller tweeted that he was “investigating anomalies with wallet movements related to the consolidation of FTX balances across all exchanges.”
Hundreds of millions
Data from Singapore-based analyst Nansen showed a one-day net outflow from FTX of about US$266 million, with US$73 million withdrawn from FTX US alone. FTX did not respond to a Reuters request for comment. Before Miller’s tweets, FTX officials appeared to confirm rumors of a hack on the company’s Telegram channel, according to a CoinDesk report that said the exchange had instructed customers to delete FTX apps and avoid its website . “FTX has been hacked,” an account manager on the FTX Support Telegram channel wrote in a message, according to CoinDesk. Reuters could not immediately verify the details posted on FTX’s private Telegram channel. FTX, affiliate cryptocurrency trading firm Alameda Research and about 130 of its other companies have filed for bankruptcy protection from creditors in Delaware, FTX announced Friday. The troubled cryptocurrency trading platform struggled to raise billions as traders withdrew $6 billion in crypto tokens from the platform in just 72 hours and rival exchange Binance abandoned a proposed bailout deal this week.
