US Opens Probe into $400M FTX Hack

Fazzaco learned that the US Department of Justice has opened a criminal investigation into the alleged hack that made the Bahamas-based crypto exchange FTX suffer from approximately $400 million loss.

Reportedly, the hack case occurred the night FTX filed for bankruptcy. Between Nov. 11 and the early hours of Nov. 12, a large amount of cryptocurrencies began moving out of FTX and FTX US's wallets, with no FTX employee recognizing this.

Over an hour after the suspected hack began, FTX General Counsel Ryne Miller tweeted that the firm was investigating abnormalities with wallet movements, and later posted a message in FTX's official Telegram support channel: "FTX has been hacked. FTX apps are malware. Delete them. Chat is open. Don't go on FTX site as it might download Trojans."

In the afternoon of Nov. 12, FTX CEO John Jay Ray III confirmed the hack, and said they were in contact with law enforcement.

Reportedly, authorities have been able to freeze part of the stolen capital. 

Recently, Fazzaco has covered a host of crypto firms that have been hacked, including Defrost Finance​, BitKeep, and Lodestar Finance​.