A Third of a Billion Dollars’ Worth of FTX Coins Are Being Released
Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.
According to on-chain statistics, the FTX Exchange Tokens (FTT) deployer contract unintentionally generated 192 million additional tickets and delivered them to a recently formed wallet. These FTX coins are currently valued at $380 million on the market. The exchange made the new FTT available without prior notification due to an FTX breach uncovered by on-chain statistics. Binance has halted accepting FTT deposits because of the massive rush of new tokens onto the market.
According to anonymous crypto researcher 0xfoobar, the number of freshly generated tokens exceeded the previous circulating FTT supply of roughly 133 million. The FTT coin instabilities were one of the factors that led to the failure of FTX and the trading firm Alameda, and Binance’s announcement was extremely beneficial. The financial statement of FTX’s sister company indicated that most of the company’s assets were denominated in FTT tokens. As a result, FTX collapsed. Client bank runs throughout the preceding week aided in the exchange collapsing in front of everyone a few days later.
And now they’re minting arbitrary amounts of FTT. 196m additional FTT, worth a third of a billion dollars, transferred from the FTX deployer wallet. Current circulating supply is supposed to be only 133m. https://t.co/ktHFsMqnvT
— foobar (@0xfoobar) November 13, 2022
FTX Hacked
The creator of FTX, Sam Bankman-Fried, just announced his departure, and it has been alleged that he moved about $10 billion from FTX to Alameda Research late Friday night.
Press Release pic.twitter.com/rgxq3QSBqm
— FTX (@FTX_Official) November 11, 2022
When multiple unusual wallet transactions were detected, it was determined that between $1 and $2 billion in user money had been stolen. Blockchain transactions reveal that FTX’s wallet address has acquired Ethereum, Solana, and BNB tokens worth $105.3 million from foreign and US-based accounts since November 11 at 9:20 PM (ET).
The FTX wallet converted $16 million USDT into DAI via the decentralized exchange 1inch after Tether banned its USDT. Before selling USDT and sETH coins, the address later authorized LINK, USDT, and sETH. The cryptocurrency community kept an eye on wallet transaction outflows and inflows and eventually found that the wallet had allowed $24 million in LINK on CowSwap. According to on-chain statistics, the same wallet also bought millions of LIDO.
Legal Consequences That Could Occur
Despite being linked to charges that assisted FTX in evading regulations, the Securities and Exchange Commission (SEC) is currently looking into how FTX maintains and handles customer assets. Because of this most recent development, the SEC investigation into FTX is being extensively investigated. According to FTX’s announcement on Friday night, the company would be overseen by well-known restructuring expert John J. Ray III. Ray III oversaw the liquidation of Enron Corp., one of the greatest bankruptcies in history.
General Counsel for FTX US, Ryne Miller, stated that following the filing of Chapter 11, FTX US and FTX.com had moved all digital assets to cold storage. Miller added that the process had been sped up to mitigate the effects of the uncovered illegal activities. According to a breaking report from Bitcoin Archive, SBF had a “backdoor” built into FTX’s accounting software. This method shifted assets worth billions of dollars without notifying staff or external auditors.
Related news:
