The United States Department of Justice is investigating the hundreds of millions of dollars’ worth of cryptocurrency taken in unauthorized transactions from collapsed exchange FTX, according to a report on Tuesday.
FTX was hit with a mystery attack on November 11, shortly after it filed for Chapter 11 bankruptcy, adding a surprise twist to the saga around the exchange and its outspoken founder, Sam Bankman-Fried (SBF). The funds were then moved around to other exchanges and converted into different cryptocurrencies.
Now, federal prosecutors are tracking the assets—and have managed to freeze some, Bloomberg first reported Tuesday, citing a person familiar with the case. However, the amount of funds frozen are described as a “fraction” of the overall amount.
Blockchain analysts claim that about $650 million worth of cryptocurrency left the Bahamas-based digital asset exchange in the hack, making it one of the largest crypto attacks of 2022. However, FTX’s bankruptcy filing notes that “at least $372 million” was stolen, suggesting some discrepancy in the accounting of the missing funds.
(Reporting by Shikha Singh; Editing by Laxmikant Khanvilkar)
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