NewsBytes
    Hindi Tamil Telugu
    More
    In the news
    Mukesh Ambani
    WhatsApp
    Reliance Jio
    OPPO
    Vivo
    Sensex
    Bitcoin
    NewsBytes
    Hindi Tamil Telugu
    NewsBytes
    User Placeholder

    Hi,

    Logout


    India Business World Politics Sports Technology Entertainment Auto Lifestyle Inspirational Career Bengaluru Delhi Mumbai Visual Stories Find Cricket Statistics Phones Reviews Fitness Bands Reviews Speakers Reviews

    Download Android App

    Follow us on
    • Facebook
    • Twitter
    • Linkedin
     
    Home / News / Business News / FTX collapse: Cryptocurrency worth $415 million stolen by hackers
    Business

    FTX collapse: Cryptocurrency worth $415 million stolen by hackers

    FTX collapse: Cryptocurrency worth $415 million stolen by hackers
    Written by Dwaipayan Roy
    Jan 18, 2023, 11:39 am 3 min read
    FTX collapse: Cryptocurrency worth $415 million stolen by hackers
    FTX filed for bankruptcy in November 2022 (Photo credit: FTX)

    Collapsed cryptocurrency exchange FTX's woes are unlikely to end soon. CEO John J. Ray III has now claimed that crypto worth around $415 million was stolen from the firm by hackers, including $90 million from the US platform and $323 million from the global exchange. To recall, FTX filed for bankruptcy in November 2022, and its co-founder Sam Bankman-Fried was arrested in December.

    Why does this story matter?

    • The world of cryptocurrency is marred by controversy, but none as big as that surrounding FTX. Once the world's third-largest cryptocurrency exchange, it is now in meltdown.
    • The firm owes a lot of money to many people. At such a time, the news of a massive fund theft by hackers worsens the situation.
    • How the company navigates this mess remains to be seen.

    What's the current state of FTX's assets?

    Since filing for bankruptcy, FTX has recovered liquid assets to the tune of around $5.5 billion. The term "liquid" implies that an asset can be converted into cash without hurting its value. The recovered assets comprise $0.3 billion worth of securities, $1.7 billion cash, and $3.5 billion of crypto assets. However, an estimate of the total liabilities is yet to be determined.

    Digital assets worth billions have also been identified

    Digital assets associated with FTX worth $181 million have been identified in the US. This includes $3 million pending transfer to cold storage under the control of FTX Debtors, $88 million in cold storage, and $90 million which was hacked after filing for bankruptcy. Globally, $1.6 billion in digital assets have been found, of which $323 million was subjected to unauthorized third-party transfers.

    How did FTX's downfall begin?

    Bankman-Fried co-founded FTX in 2019 and a year ago it was valued at $32 billion. Its fall began when CoinDesk published a balance sheet that showed Alameda Research (FTX's sister company) was dependent on FTT, FTX's native coin. Thus questions regarding its liquidity were raised. Rival firm Binance gave an acquisition proposal but later backed out when the controversy surrounding FTX started to increase.

    FTX filed for bankruptcy in November 2022

    In November last year, the matter hit a boiling point and FTX filed for bankruptcy. There were rumors of fund misappropriation. Investigators claimed that funds belonging to the creditors were transferred from FTX to Alameda Research.

    Bankman-Fried is out on bail

    Bankman-Fried was arrested in the Bahamas in December 2022 and extradited to the US. He is out on bail as of now. The FTX co-founder has been accused of stealing funds from FTX users to cover debts at Alameda Research. However, he has pleaded not guilty to fraud charges. He also claims that "FTX US is solvent, as it always has been."

    Share this timeline
    Facebook
    Whatsapp
    Twitter
    Linkedin
    Latest
    Cryptocurrency
    Binance USD

    Latest

    Republic Day: How are foreign dignitaries selected as chief guests Republic Day
    Rani Mukerji's 'Mrs. Chatterjee vs Norway' release date postponed Bollywood
    'Shazam! 2' exclusive final poster released ahead of trailer DC Extended Universe
    Republic Day: Made-in-India weapons systems flaunted at parade Republic Day

    Cryptocurrency

    Cryptocurrency prices: Today's rates of Bitcoin, Ethereum, Solana, Shiba Inu Bitcoin
    Today's cryptocurrency prices: Check rates of Bitcoin, Ethereum, BNB, Solana Ethereum
    Cryptocurrency prices today: Check rates of Bitcoin, Dogecoin, Ethereum, BNB Bitcoin
    Today's cryptocurrency prices: Check rates of Dogecoin, Tether, Bitcoin, Solana Bitcoin

    Binance USD

    Who is Nishad Singh, the Indian-origin executive who ran FTX? Cryptocurrency
    Today's cryptocurrency prices: Check Bitcoin, Ethereum, Dogecoin, Solana rates Bitcoin
    Cryptocurrency prices: Check today's rates of Bitcoin, Ethereum, Polygon, Tether Bitcoin
    Cryptocurrency prices today: Check rates of Bitcoin, Ethereum, Dogecoin, Solana Bitcoin

    Love Business News?

    Subscribe to stay updated.

    Business Thumbnail
    Indian Premier League (IPL) Celebrity Hollywood Bollywood UEFA Champions League Tennis Football Smartphones Cryptocurrency Upcoming Movies Premier League Cricket News Latest automobiles Latest Cars Upcoming Cars Latest Bikes Upcoming Tablets
    About Us Privacy Policy Terms & Conditions Contact Us Ethical Conduct Grievance Redressal News News Archive Topics Archive Download DevBytes Find Cricket Statistics
    Follow us on
    Facebook Twitter Linkedin
    All rights reserved © NewsBytes 2023