The troubled crypto currency exchange FTX has pointed to a breach in November that resulted in the theft of $415 million as part of the assets regained to pay off creditors.
The defunct crypto currency exchange FTX has discovered (1) that a crypto hack involving $415 million is among the $5.5 billion worth of crypto assets that need to be recovered. John Ray III who is the new CEO of the exchange, stated that to uncover this information, the team had to put in a significant amount of work conducting investigations.
FTX also gave further facts on Tuesday, indicating that it has regained $1.7 billion in cash and $3.5 billion in liquid crypto currency. Additionally, the once second-largest crypto currency exchange was successfully retrieving $300 million worth of liquid equities.
Ray said the following in a statement he released on Tuesday:
"We are making significant progress in our attempts to enhance collections, and it has taken a Mammoth forensic effort from our team to find this initial data," said the company leader.
Reimbursement Plan from Binance
FTX is planning to seek reimbursement for the $2.1 billion paid to Binance as part of a repurchase agreement, in addition to the $415 million lost in a hack.
In addition to trying to get back the $415 million stolen in a breach, the insolvent corporation is also looking into the possibility of recovering another asset. Reports indicate that the advisers of FTX are evaluating whether or not to approve a share buyout payment of $2.1 billion from the exchanges to its competitor Binance in the third quarter of 2021. Although Binance was the first outside investor in FTX, the company finally sold its interest back to FTX in 2021.
When questioned whether the probable $2.1 billion clawback is part of FTX's bankruptcy procedures, Zhao put his faith in his attorneys. He stated,
"I believe we should leave it up to the attorneys, and I have no doubt that our legal staff is more than capable of dealing with it."
A presentation titled "Maximizing FTX Recoveries" was given by attorneys and advisers representing FTX debtors. In the presentation, they updated recovery-bound identifying total liquid assets. The "unauthorized third-party transfers" amounting to $323 million of the foreign corporation FTX.com are included in the overall worth of such recovered assets, which comes to a total of $5.5 billion.
In addition, the estimate of about $5 billion that was provided by the legal team representing the FTX debtor included $90 million from FTX US. In addition, the troubled crypto currency exchange asserts that it was responsible for losing another $2 million worth of crypto currency belonging to the exchange's sister company, Alameda Research.
According to FTX, this lost crypto currency is connected to the hack that occurred in November on the company's systems following the spectacular collapse of the company.
Elliptic, a company specializing in blockchain analytics, estimates that the value of the stolen FTX crypto currency was around $477 million at the time of the breach. In addition, despite the current wave of asset returns, FTX did not estimate the overall amount of its obligations. Since the beginning of November, the FTT token used on the defunct exchange has reached a decline of 90%.
SBF Suspected Financial Misuse
Sam Bankman-Fried, has been charged with stealing billions of dollars worth of cash from FTX's customers and giving them to Alameda Research. The huge funds in question are alleged to have been transferred by SBF to a liquidity-based crypto currency trading platform to offset financial obligations. However, in recent times, the once-lauded crypto wunderkind has refuted all of the fraud allegations against him.
SBF has another court appearance scheduled for October 2nd when the beginning of his trial for the eight-count criminal charge will occur. These are examples of fraud committed via wire transfers and improper use of clients' funds. The once-revered "crypto hero" faces up to 115 years in federal prison if he is proven guilty of the charges against him.