January 19, 2023
FTX informed creditors that it had lost approximately $415 million in cryptocurrencies due to hacks since declaring bankruptcy on November 11.
A few days after FTX declared bankruptcy in November, new CEO John Ray announced that the exchange had been hacked and had lost over $372 million.
According to the company, the missing funds include “unauthorized third-party transfers” of $323 million from FTX.com (the international business) and $90 million from FTX US. Another $2 million in cryptocurrency was stolen from hedge fund Alameda Research.
The hacked funds are part of the US$5.5 billion in liquid assets identified for recovery by FTX, which includes US$1.7 billion in cash, US$3.5 billion in cryptocurrencies (including FTX Token (FTT), and US$300 million in liquid securities.
FTX also stated that it had recovered more than $5 billion in cryptocurrency, cash, and liquid securities, but that significant shortfalls remained at both its international and US crypto exchanges. It said it had recovered $1.7 billion in cash, $3.5 billion in liquid cryptocurrency and $300 million in liquid securities.
Based on crypto prices on November 11, 2022, the recovered crypto assets include $685 million in Solana, $529 million in FTX’s proprietary FTT token, and $268 million in bitcoin. Solana, which Bankman-Fried praised, lost the majority of its value by 2022.
The sources for this piece include an article in Reuters.
