Crypto Crisis: Ex-FTX CEO under Watch amidst FTX Night Hack

 Sam Bankman-Fried and two other former FTX associates, co-founder Gary Wang and director of engineering Nishad Singh alongside Alameda Research CEO Caroline Ellison are all currently reported to be under strict supervision by Bahamas authorities as he looks to flee to Dubai amid the worsening crypto disasters even as John Ray new FTX CEO Confirms the FTX hack rumours as exchange Sees mysterious outflows of over $600M. An official in FTX has also instructed users to delete FTX apps and avoid its website for now until the storm is over.  How soon if ever

In a statement issued via Ryne Miller, FTX’s general counsel, on Twitter Ray Says that both FTX.com and FTX US are working with law the authorities to secure all FTX assets, wherever located. Miller went on to say that, the wallets appearing to belong to FTX that began moving assets after the hack on Friday night were the exchange taking what he called 

precautionary steps…to mitigate damage upon observing unauthorized transactions.

John Ray confirmed Miller’s statement, adding that FTX is 

in the process of removing trading and withdrawal functionality and moving as many digital assets as can be identified to a new cold wallet custodian.

According to Ray, the company’s executives have been 

in contact with, and are coordinating with law enforcement and relevant regulators” following the hack.

Approximately 130 companies in the FTX Group, including FTX Trading, FTX US, and Alameda Research started bankruptcy proceedings on Nov. 11. One thing you can be sure of is that the last has yet to be heard of the FTX debacle. The former FTX CEO who is the major actor in all scandals will end up as one of the industry’s biggest scandals.  You will remember that a report from The Wall Street Journal on Nov. 9 suggested that the U.S. Department of Justice and the Securities and Exchange Commission are investigating the collapse of the crypto exchange.  On the other hand, the Department of Financial Protection and Innovation (DFPI) in California announced on Nov. 10 that it will open up an investigation as to the “apparent failure” of the exchange.

Recommended Read: How To Choose Crypto Exchange In 2022: The Beginner’s Guide

What impact do you think this will have on the crypto space in the long run? Let’s hear your opinions and predictions in the comment section below

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FAQs

Was FTX really hacked?

The full meaning of EEA is European Economic Area. EEA Workers from outside the European Economic Area (EEA) require permits to work in the Netherlands..

Has FTX ever been hacked before?

Since FTX's inception in 2019, it has maintained its reputation as a safe cryptocurrency exchange, having never been hacked or otherwise compromised until the hack on Saturday, after the exchange declared bankruptcy on Friday.

Why did FTX go bankrupt?

FTX, a major cryptocurrency exchange, collapsed and declared bankruptcy amid liquidity concerns and allegations of misused funds, followed by a large volume of withdrawals from rattled investors. Binance had announced it would no longer buy FTX due to what they called corporate due diligence, regulatory investigations, and reports of mishandled funds.