Wednesday, February 8, 2023

FTX crypto platform resources go missing

NEW YORK ( Associated Press) — Bankrupt cryptocurrency firm FTX confirmed it has “no authorized access” to its accounts, hours after it filed for Chapter 11 bankruptcy protection Friday.

The company’s CEO, John Ray III, said Saturday that FTX has disabled the ability to exchange or withdraw funds and to protect its customers’ assets, according to a tweet from FTX General Counsel Rain Miller. is taking steps.

The cryptocurrency platform also indicated that it is coordinating with the justice and regulatory authorities in the region.

The exact amount of money involved is unknown, but analyst firm Elliptic estimated on Saturday that $477 million was missing from the platform. Tom Robinson, co-founder and chief scientist at Elliptic, said another $186 million was moved out of FTX accounts, but it could be moving the assets into storage.

On social networks, there is debate about whether the platform was hacked or whether some executive of the company stole the resources, a possibility that cryptocurrency analysts do not rule out.

Until recently, FTX was one of the largest cryptocurrency platforms in the world. By the time the firm filed for bankruptcy protection on Friday, it was down billions of dollars and its former CEO and founder Sam Bankman-Fried had resigned.

According to the bankruptcy filing, the platform held between $10 billion and $50 billion in assets, and had more than 130 affiliated companies around the world.

The collapse of the once-crypto giant is having an effect on the sector, as companies backing FTX are reducing their investments while the prices of bitcoin and other digital currencies plummet. Politicians and watchdogs are calling for tighter monitoring of the complex. Experts say the phenomenon continues in development.

Nation World News Desk
Nation World News Desk
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