Placed in bankruptcy on Friday, FTX was the victim of “unauthorized” transactions, said Ryne Miller, legal manager of the cryptocurrency exchange platform, on Saturday. FTX has “taken precautionary steps to move all digital assets to cold storage,” i.e. a wallet for storing cryptocurrency online, he added. “The process was expedited (Friday) evening – to mitigate the damage when observing unauthorized transactions. »
Ryne Miller had, late Friday evening, reported an “investigation into anomalies with portfolio movements related to the consolidation of FTX balances between exchanges”, and had referred to “unclear facts because other movements are not clear”.
FTX, considered until ten days ago as the second largest cryptocurrency platform in the world and valued at some $32 billion, suffered a lightning rout. The company, in turmoil for a week, was on Friday voluntarily placed under the protection of Chapter 11 of the US bankruptcy law. Its founder, Sam Bankman-Fried, 30, a hitherto multi-billionaire, resigned and was replaced by John J. Ray III.
The group is under investigation
The disappointment came to light when news reports revealed that his Alameda Research fund was investing in cryptoassets issued by FTX. com in a risky financial arrangement that risks revealing major conflicts of interest. FTX’s setbacks were also accentuated by industry leader Binance, which announced it was selling a cryptocurrency linked to the FTX group on Sunday, then offered to buy FTX. com on Tuesday before retracting on Wednesday.
The group is under investigation by the Securities Exchange Commission and the Justice Department in New York, according to the New York Times citing sources familiar with the investigation. And the fall from favor extended to the NBA, with the Miami Heat announcing that their stadium, the FTX Arena, would be renamed.