Bankrupt crypto exchange platform FTX was examining abnormal transactions after analysts claimed funds worth hundreds of millions of dollars were withdrawn in a potential hack, the Financial Times reported.
that at least $1 billion of customer funds totalling $10 billion moved by Sam Bankman-Fried, FTX founder and its CEO until he resigned on Friday, from the exchange platform to its sister company Alameda Research was now missing. The news agency cited two sources who worked at FTX until this week.
Bankman-Fried shared documents with other FTX executives last week which showed the missing funds, the sources told Reuters, adding that it gave a breakdown of the financial situation. He told Reuters in text messages that he"disagreed with the characterisation" of transferring $10 billion and said"we didn't secretly transfer." He added:"We had confusing internal labelling and misread it.
Alameda Research, part of the FTX group along with 130 other companies, is included in the bankruptcy. Bankman-Fried:"A poor internal labelling of bank-related accounts meant that I was substantially off on my sense of users' margin. I thought it was way lower." Last week Coindesk reported that Alameda had a significantly large amount of illiquid FTX Tokens on its balance sheet, which led to the belief that it lacked sufficient liquidity.
The trading platform was hit by about $5 billion of withdrawal requests last weekend, forcing it to suspend them. Bankman-Fried tried but failed in his efforts to be bailed out by the likes of Binance or Kraken.
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