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HONG KONG – FTX, a cryptocurrency exchange that was once one of the most popular in Hong Kong and Singapore has fallen victim to yet another hack. This time around however $6 billion worth or customer funds were withdrawn over 72 hours which sent alarms ringing throughout trading circles as well as analysts who have pointed out suspicious transactions involving millions moving off their respective platforms without any warning whatsoever.
We’ve seen over $2B in net outflows from FTX Intl and FTX US over the past 7 days
Of which $659M (33%) happened in the last 24 Hours
Somehow no congestion or long wait times when the wallet was getting mass drained pic.twitter.com/NJJcMJppSZ
— Martin Lee | Nansen 🧭 (@themlpx) November 12, 2022
FTX International’s U.S.-based general counsel, Ryne Miller recently announced on Twitter that their digital assets are being moved into so-called ‘cold storage’ to mitigate damage upon observing unauthorized transactions. The move comes just days after the company lost 30% of its value following a dramatic fall from grace which saw many investors pulling out or moving away in light at what they perceived as an unsafe haven for funds due largely because there is no clear legal framework around cryptocurrencies here yet – something Bankman-Fried has been shorted about since last year.
Bankman-Fried’s fate remains uncertain after he abruptly quit Twitter and did not reveal his location. Speculation mounted that Bankmann, who lives in the Bahamas but denied reports on social media claiming to be en route South America for vacation last week when many investors were reeling from Friday’s cryptocurrency crash which saw prices drop up reaching $6k USD per coin – causing bank accounts seize.
Coinbase, one of the world’s largest cryptocurrency exchanges and an investor in FTX has said that they will be writing off their investments from 2021 due to poor performance.FTX was founded by former Wall Street trader Jay545 who brought together some familiar names like SoftBank Capital along with new ones such as BlackRock & Temasek after raising $2 billion dollars In January 2019 at a valuation 32x what it currently stands.
Cryptocurrency markets are still very small and it won’t cause any major problems for financial markets because there’s only about 890 billion dollar compared to America’s trillion-dollar equity market.
FTX Trading is in ruins. The company, which filed for bankruptcy protection on Friday after more than 100 thousand creditors were made whole from its $10-$50 billion worth of assets and liabilities, had to appoint an expert CEO with experience revitalizing struggling businesses like theirs because it’s not just about FTXTing anymore—it’s all Invstr Stock Xchange societies around t he world are also facing downfall due debt binge fueled by Instagram.