The FTX Hacker Moves $12.6 Million in Ethereum
The individual or entity known as the “FTX hacker” has recently moved 7,500 ether, equivalent to $12.6 million, from the collapsed crypto exchange FTX. In the past two days, the hacker transferred a total of 22,500 ETH, amounting to $38 million. This movement involved swapping ether for bitcoin through Thorchain and Railgun.
According to Lookonchain, the FTX hacker currently holds more than 163,000 ETH, valued at around $275 million, across multiple wallets.
Hacker’s Activities Coincide with CEO’s Trial
The timing of these fund movements is significant as FTX’s former CEO and founder, Sam Bankman-Fried, is about to face trial for fraud and money-laundering charges. Bankman-Fried filed for Chapter 11 bankruptcy protection and left the company shortly before an unidentified hacker stole over $350 million worth of crypto assets from FTX’s wallets.
The Fallout from the FTX Hack
In response to the hack, the U.S. Justice Department launched an investigation to identify the responsible party. While the identity of the hacker remains unknown, Bankman-Fried suggested that it could be an insider who obtained FTX’s private keys, potentially a former employee or another malicious actor.
John J. Ray III, who took over as CEO after FTX’s downfall, revealed that the exchange kept its private keys unencrypted and had inadequate security measures in place. These vulnerabilities may have made it easier for the hack to occur.
Hot Take: The Ongoing Saga of the FTX Hack
The movements of funds by the FTX hacker raise questions about the security practices and vulnerabilities within the crypto industry. As the trial of FTX’s former CEO approaches, the focus on the hack intensifies. The outcome of the trial could have significant implications for the regulation and security measures implemented by crypto exchanges in the future.
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