- FTX US initiates precautionary moves to shift all digital assets to cold storage in order to mitigate damage upon observing unauthorized transactions.
- FTX’s CEO stated that they would continue to make every effort required to secure all assets, wherever they are located.
- The trading and withdrawal functionality will be removed in the process, along with as many assets as can be identified to a brand new cold wallet custodian.
We surely can’t deny that things are not going pretty well for the FTX exchange, as the officials have recently confirmed that the unauthorized transactions executed recently did drain millions of user funds from wallets over the weekend.
Following the Chapter 11 bankruptcy filings – FTX US and FTX [dot] com initiated precautionary steps to move all digital assets to cold storage. Process was expedited this evening – to mitigate damage upon observing unauthorized transactions.— Ryne Miller (@_Ryne_Miller) November 12, 2022
In response to the same, the new Chief Restructuring Officer and CEO of FTX, John Ray, released a confirmation on Sunday. The statement addressed that unauthorized access to certain assets had taken place. This came to light following some reports of suspicious activity on the platform.
However, it should be emphasized that the FTX officials have not clarified the exact amount of assets that have gone missing. Nevertheless, there is an estimation calculated by Elliptic, a blockchain analysis firm, that around US $477 million was compromised in the suspected theft.
This activity has come to FTX users and investors who have their funds stuck in an exchange that is illiquid.
1/ Statement from John Ray, Chief Restructuring Officer and CEO of @FTX_Official — Consistent with their obligations as Chapter 11 Debtors-in-Possession, FTX US and FTX [dot] com continue to make every effort to secure all assets, wherever located.— Ryne Miller (@_Ryne_Miller) November 12, 2022
As per the General Counsel at FTX US Ryne Miller’s tweet on Saturday, on Friday, FTX filed for Chapter 11 bankruptcy and addressed that the FTX wallets were being drained to be shifted to cold storage. Well, this process was expedited to mitigate the harm upon observing unauthorized transactions.
FTX CEO John Ray revealed that FTX is in the process of abolishing trading and withdrawal functionality and is shifting as many digital assets as can be identified to a brand new cold wallet custodian.
In addition to this, it was revealed that the company is taking steps in response to the incident and will be establishing coordination with law enforcement entities and relevant regulating bodies.