Us department of justice is investigating a massive crypto theft from the now-collapsed exchange ftx. hundreds of millions of dollars’ worth of cryptocurrency was taken in unauthorized transactions, and federal prosecutors have managed to freeze some of the funds. blockchain analysts estimate that about $650 million worth of cryptocurrency left the exchange in the hack, making it one of the largest crypto attacks of 2022.
Mystery attack on ftx occurred in november and was quickly followed by the company filing for chapter 11 bankruptcy. the funds were moved around to other exchanges and converted into different cryptocurrencies. ftx’s bankruptcy filing notes that “at least $372 million” was stolen, suggesting some discrepancy in the accounting of the missing funds.
Doj investigation does not relate to the eight criminal charges earlier this month against ftx co-founder and former ceo bankman-fried, including money laundering and wire fraud. bankman-fried previously hinted before his arrest that the unauthorized transactions may have been an inside job performed by a disgruntled employee. alameda research, a sister company also founded by bankman-fried, had the ability to use ftx customer assets for its own means and without oversight. the amount of funds frozen by federal prosecutors is described as a “fraction” of the overall amount.