The FTX drama which started last week, took another unexpected turn for the worse as the exchange was hacked last Friday.
FTX saw a series of unauthorized transactions over the weekend and net outflows from FTX and FTX US exceeding $600 million.
The FTX official Telegram channel announced on Friday that the exchange was hacked as an administrator account warned people not to go to the FTX website as “it might download Trojans.”
The statement said:
FTX has been hacked. FTX apps are malware. Delete them. Chat is open. Don’t go on FTX site as it might download Trojans.
FTX General Counsel Ryne Miller shared in a tweet later that the exchange is moving their digital assets to cold storage as the FTX to mitigate damage from unauthorized transactions.
FTX and FTX US appear to be affected by a Trojan. The crypto disaster unfolded on twitter as FTX customers claimed that they received SMS messages and emails urging them to use the app and website. Some users reported seeing $0 balance in their accounts.
The collapse of the exchange started in the beginning of last week when reports came that FTX faced liquidity issue and Binance CEO Changpeng Zhao tweeted that his company was liquidating its entire FTX token holdings. Binance initially offered to rescue FTX with a buy out of its non-us assets but quickly backed out of the deal.
On 11 November, FTX CEO Sam Bankman-Fried announced that FTX, FTX US and Alameda Research were filing for bankruptcy and resigned from his position. He apologised on Twitter for his actions that lead up to FTX’s crisis, saying he “f*cked up”.
