Kumanan Ramanathan Safeguards $500 Million of Customer Funds During FTX Hack
A former employee of a legal firm consulting for Sam Bankman-Fried’s crypto exchange, Kumanan Ramanathan, played a crucial role in protecting up to $500 million of customer funds during the FTX hack. When unusual transactions were detected from FTX wallets on November 11, Zach Dexter, CEO of FTX subsidiary LedgerX, organized a Google Meet call with former employees to find a solution. Ramanathan, who advised FTX from Alvarez & Marshall, volunteered to create a new wallet on his Ledger Nano and transfer the funds there. Gary Wang, former CTO at FTX and Alameda, also supported the effort by transferring customer assets to Ramanathan’s personal hard wallet using his backdoor access to FTX’s systems.
On November 12, Ramanathan and FTX general counsel Ryne Miller moved $500 million in customer crypto to BitGo for safekeeping. However, before all the assets could be transferred, an unidentified hacker managed to steal over $400 million from the platform. The hacker attempted to cover their tracks by transferring some of the stolen crypto to cross-chain protocols like Thorchain and Railgun for laundering purposes. Despite the setback, FTX’s estate under CEO John Ray III has recovered $7 billion in assets and is planning to relaunch as FTX 2.0 while pursuing legal action against Bankman-Fried’s parents.
Hot Take: Former Employee Plays Heroic Role in Protecting Customer Funds During FTX Hack
Kumanan Ramanathan demonstrated exceptional dedication and quick thinking when he safeguarded up to $500 million of customer funds during the FTX hack. By creating a new wallet on his Ledger Nano and transferring the funds there, Ramanathan prevented even greater losses. However, the efforts of Ramanathan and his colleagues were not without challenges, as an unidentified hacker managed to steal over $400 million before all the assets could be secured. This incident highlights the importance of robust security measures in the crypto industry and serves as a reminder of the constant threat posed by hackers. FTX’s recovery of $7 billion in assets and its determination to relaunch as FTX 2.0 demonstrate the resilience and commitment of the exchange to its users and creditors.
By
By
By
By
By