DOJ investigating theft of $372M from FTX amid trial of founder
Christopher Hutton
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Federal prosecutors are investigating allegations that a hacker drained $372 million out of the cryptoexchange FTX hours after it filed for bankruptcy amid its collapse.
The Department of Justice has launched a criminal investigation into the hack that stole said money hours after FTX filed for bankruptcy, according to Bloomberg. While officials have frozen some of the stolen crypto assets, they only count for a small part of said loot.
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The hack was revealed by newly appointed CEO John J. Ray III, who stated on Nov. 12 that there had been “unauthorized access” to FTX’s assets on Nov. 11.
It is unclear if the infiltration and subsequent hack are an inside job or the work of an outside hacker. FTX founder Sam Bankman-Fried alleged the theft was done by someone from within the company. The amount stolen is estimated to be around $372 million, according to bankruptcy filings.
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Bankman-Fried appeared in court for the first time after being charged by federal courts in New York over charges of fraud. He was ordered to pay a $250 million bail and to stay with his parents during the court proceedings by a judge. He also faces charges from the Securities and Exchange Commission and the Commodity Futures Trading Commission.
Representatives from the DOJ declined to comment.