Collapsed Cryptocurrency Exchange Claims $415 million was Stolen

TEHDIGEST- According to the defunct cryptocurrency exchange FTX, hackers stole approximately $415 million (£338 million) in cryptocurrencies.

According to FTX’s CEO, since the company filed for bankruptcy, $323 million from its worldwide exchange and $90 million from its US platform had been compromised.

Sam Bankman-Fried, a co-founder of FTX, is charged with stealing billions of dollars from FTX consumers to settle debts at his other company, Alameda Research. On charges of fraud, Mr. Bankman-Fried has entered a not-guilty plea.

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The business informed a Delaware bankruptcy judge last week that it had acquired more than $5 billion in assets.

On November 11, FTX, which had a $32 billion market value a year prior, filed for bankruptcy protection. $8 billion in client cash are thought to have gone missing.

One of the most prominent individuals in the cryptocurrency sector, Mr. Bankman-Fried co-founded FTX in 2019 and was well-known for his political connections, celebrity endorsements, and bailouts of other faltering businesses.

He was taken into custody in the Bahamas, where FTX has its headquarters, in December.

After being extradited to the US, Mr. Bankman-Fried was granted bail for $250 million and released. He was obliged to wear an electronic monitoring bracelet as part of his bail conditions and was primarily confined to his parents’ California home, who are Stanford University law professors.

In a press conference last month, federal prosecutors said the meltdown at the platform, which allowed customers to buy and sell digital tokens, stemmed from “intentional fraud”.

Prosecutors accused Mr Bankman-Fried of misappropriating FTX customer funds to pay debts at his other company, Alameda, and to make other investments.

They announced eight criminal charges, including wire fraud, money laundering and campaign finance violations. Financial regulators also brought claims against Mr Bankman-Fried. He has denied the charges.

Later on, Tuesday, Mr Bankman-Fried reiterated his claim that “FTX US is solvent, as it always has been”.



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