US Department of Justice Investigates $372 Million FTX Hack

US Department of Justice Investigates $372 Million FTX Hack

After FTX filed for bankruptcy, the US Department of Justice (DOJ) opened a criminal investigation into the attack that led to the loss of around $372 million from wallets under FTX’s control.

According to a Bloomberg report, an insider stated that part of the stolen funds has been successfully frozen by US officials but the frozen assets, however, only make up a small portion of the total hack.

Following the attack last month, FTX US general counsel Ryne Miller tweeted a statement from John Ray, the company’s new chief restructuring officer and CEO, stating that the team has been in touch and is working with law authorities and the appropriate regulators on the hack problem.

The inquiry is being led by the DOJ’s National Cryptocurrency Enforcement Team. Federal prosecutors in Manhattan who are in charge of the broad criminal investigation that led to Bankman-detention Fried’s are working with the organization.

Authorities were able to freeze some of the stolen cash as a result of the FTX’s cooperation with law enforcement. That is not the case in other situations, particularly with offshore exchanges. The bankruptcy petition for FTX included a reference to the $372 million sum.

The creator of FTX, Sam Bankman-Fried, said that the incident was caused by either a former employee of FTX or someone who had illegal access to a former employee’s computer.

The tokens seized from FTX wallets were allegedly swapped for RenBTC, according to a report on the flow of the stolen assets by blockchain analytics firm Elliptic.

Compiled by Coinbold


Latest news

Upcoming Events