Ramanathan’s Ledger Wallet Shields FTX Assets
In response to a major security breach, FTX cryptocurrency exchange took swift action to protect its assets. Unusual withdrawals raised alarms, resulting in reported losses of over $400 million. Kumanan Ramanathan, a consultant from Alvarez & Marsall, played a crucial role in preventing further losses by offering his personal Ledger Nano hardware wallet as a temporary solution. This move shielded between $400 and $500 million of FTX’s cryptocurrency. With the help of former CTO Gary Wang, transactions were executed to safeguard the assets until BitGo’s cold storage wallets were operational. Wired investigation revealed that FTX collaborated with BitGo and secured over $1.1 billion in total.
Stolen FTX Assets Shift to Bitcoin
Recent observations indicate that stolen funds from FTX have transitioned from Ethereum to Bitcoin using cross-chain exchange services like Thorchain and Railgun. This strategy, known as chain hopping, is used to obscure the origin of the funds. The identity of the hacker remains unknown, but there are hints suggesting possible insider involvement.
Hot Take: Lessons Learned from FTX Security Breach
The FTX security breach and subsequent actions taken highlight the importance of prompt response and collaboration in mitigating losses. By leveraging the expertise of Kumanan Ramanathan and utilizing temporary solutions like Ledger Nano hardware wallets, FTX was able to protect a significant portion of its assets. The collaboration with BitGo and transfer of funds to the Securities Commission of the Bahamas further enhanced their protective measures. This incident serves as a reminder for crypto exchanges to continuously improve their security protocols and remain vigilant against potential threats.
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