FTX crypto exchange filed for bankruptcy and then was hacked – expert review by Crypto-Upvotes

FTX founder Sam Bankman-Fried, stepped down as CEO. Then unknown hackers hacked FTX crypto exchange and managed to withdraw about $400 million.

Cryptocurrency exchange FTX reported on its Twitter page about the filing for bankruptcy. According to the report, FTX Trading Ltd., Alameda Research and 130 other affiliated companies began voluntary proceedings under Chapter 11 of the U.S. Bankruptcy Code. The procedure will allow the companies to get protection from creditors’ claims during business reorganization and debt restructuring.

At the same time, it was announced that Sam Bankman-Fried is stepping down as CEO of the platform. John Ray III has been appointed as the new CEO.

FTX needs up to $8 billion to save business and customer funds

FTX CEO Bankman-Fried told investors that his company may need up to $8 billion to save the business and customer funds. After Binance’s failure, he continued looking for a solution and sought help from the U.S. cryptocurrency exchange Kraken. As well as to the founder of the blockchain Tron and one of the leaders of the exchange Huobi Justin Sun, but did not achieve positive results.

At the same time, on November 10, it was revealed that Bankman-Fried secretly covered Alameda’s losses with funds from FTX clients. He used for this purpose at least $4 billion from the funds of exchange.

The Securities and Exchange Commission (SEC) launched an investigation into Sam Bankman-Fried. And the Bahamas Securities Commission froze the funds of FTX Digital Markets. This company is the operator of the FTX crypto exchange. Also, stabelcoin issuer Tether blocked 46 million USDT on its wallet.

All FTT token holders cannot expect to receive funds

Because of FTX problems, capitalization of the entire crypto market decreased by 24%. And the panic of investors will further enhance this effect – the flight from cryptocurrencies will continue – warned our expert.

For crypto market, bankruptcy of a major cryptocurrency exchange is a worsening of the investment climate. It is also another blow to authority of crypto-industry.

FTT holders will likely get a chance to lock in their losses at less catastrophic prices. This will happen after a short technical correction, which may occur in coming days. However, forecasts are negative for future of FTT holders and exchange clients as well. A miracle is unlikely to happen, all who could help this exchange refused.

Hackers hacked FTX and withdrew about $400 million

Unknown hackers hacked the crypto exchange FTX and managed to withdraw about $400 million. The hack was confirmed by the exchange’s official Telegram chat.

Chat administrator advised not to visit official FTX website and to delete exchanger’s application, as they may contain Trojans. At the moment, some of lost funds were recovered, and the stolen USDT of $30 million were promptly blocked by Tether issuer.