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FTX Investigating Possible $515 Million Hack After Bankruptcy Filing

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“As a customer, you’re like, ‘Oh, I’m going to try to withdraw because I don’t want to be the last customer who doesn’t actually have the funds left to return the money,'” Verradittakit said. increase. Pantera Capital said:

As speculation circulates on Twitter about suspicious FTX fund transfers, crypto industry insiders seem to be summarizing the situation in real time. After reports circulated that a person involved in the transfer of funds had an account on Kraken, another cryptocurrency exchange, Kraken Chief Security Officer Nick Percoco said: murmured“We know the identity of the user.”

Ryne Miller, general counsel for FTX’s U.S. division, responded immediately. “I’m interested in anything you can share,” he said. “Can you contact me?” A Kraken spokesperson didn’t immediately respond to a request for comment.

Bankman-Fried’s collapse was a stunning downfall for an executive who has been compared to financial giants like John Pierpont Morgan and Warren Buffett. But as bankruptcy plunged his empire into chaos, a different picture emerged.

SEC and DOJ investigators are investigating whether Bankman-Fried misused client funds to support Alameda Research, a trading company he owns. FTX lent Alameda as much as $10 billion of his client money, according to people familiar with the finance.

A few months before bankruptcy, a rift had begun. Bankman-Fried reacted defensively to feedback that he needed to hire more staff because he was overstretching himself, said a person close to him. He also delayed paying bonuses to employees who were supposed to leave before the end of the year, delaying payments by several months, the people said.

Bankman-Fried also reacted with frustration when employees asked to receive more bonuses in cash rather than stock, saying employees who didn’t want to invest in the company should quit. rice field.

FTX did not respond to requests for comment.

Erin Griffith and Stephen Gandel contributed to the report.

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