FTX Hit By Mysterious $662 Million Outflow Amid Revelation That SBF Implemented Bookkeeping “Backdoor”

Sam Bankman-Fried’s now bankrupted crypto exchange FTX plunged into further chaos late Friday night and Saturday morning after the company detected unauthorized transactions.

Bloomberg said the exchange was “hit by a mysterious outflow of about $662 million in tokens in the past 24 hours.”

These outflows came just hours after FTX filed for bankruptcy on Friday, and customers rushed to withdraw $6 billion over the last several days amid a failed Binance rescue deal.

Ryne Miller, the exchange’s US general counsel, tweeted that FTX had begun moving digital assets into cold storage, adding the process was “to mitigate damage upon observing unauthorized transactions.”

Bloomberg cited data from blockchain analytics firm Nansen, which said $662 million in withdrawals flowed out of FTX’s US and international exchanges. But in a separate analysis, research firm Elliptic noted $475 million had been stolen from FTX in transactions via stablecoins and other tokens that were converted into Ether.- READ MORE