Sam Bankman-Fried resigns as CEO, FTX files for Chapter 11 bankruptcy, and then, surprise, surprise, over $600 million goes missing from FTX wallets!
The initial reaction to the missing millions was speculation that this must have been the work of a regulator trying to safeguard client funds.
It didn’t take long for the official FTX Telegram channel to confirm that it was, in fact, the work of a hacker.
It appears the hacker (or hackers) took advantage of the panic caused by the events that unfolded over the last few days and sent SMS messages and emails to FTX account holders with prompts to log in to their accounts or the mobile app, both of which were infected with malware, granting the hackers access to user accounts.
The hackers apparently gained access to the FTX and FTX US sites, where the plot starts to thicken. The two sites were separate entities with different security protocols. It seems strange that both sites would fall victim to hackers so soon after Bankman’s resignation and the Chapter 11 bankruptcy filing.
What happened to the security protocols FTX was so proud of?
“Inside job” was the immediate reaction, and it is hard to argue against that accusation, with FTX and FTX US users advised to avoid the websites and the mobile apps.