Internet sleuths have uncovered that $515 million has disappeared from the accounts of collapsed crypto exchange FTX under 'suspicious circumstances,' according to blockchain analytics firm Elliptic. The missing funds add to the turmoil surrounding FTX, which filed for bankruptcy on Friday after a stunning financial implosion.
Company founder Sam Bankman-Fried resigned as CEO on Friday, as reports emerged that up to $2 billion in client funds had vanished from the company's books in recent weeks. Bankman-Fried is reportedly holed up in the Bahamas as his empire continues to crumble.
Nick Percoco, chief security officer of Kraken, tweeted that his team knows the identity of the user who withdrew the funds. FTX's U.S. general counsel Ryne Miller responded, requesting further information. Multiple reports suggest the withdrawal methods bear the hallmarks of a hacker.
FTX's new CEO John J. Ray III, known for guiding Enron through bankruptcy, said the company is working with law enforcement and regulators to secure all assets. The firm is moving digital assets into cold storage to prevent further unauthorized transactions.
Blockchain analytics firm Nansen reported $659 million in outflows from FTX International and FTX U.S. in the last 24 hours. Elliptic noted that while $515 million was suspected stolen, $186 million was likely moved into secure storage by FTX.
In its bankruptcy petition, FTX Trading listed assets and liabilities between $10 billion and $50 billion each, with over 100,000 creditors. Bankman-Fried had previously transferred $10 billion of customer funds to his trading company, Alameda Research, run by his girlfriend Caroline Ellison.
