The FTX crypto exchange platform just filed for bankruptcy on Friday, November 11.
(Photo: Photo illustration by Leon Neal/Getty Images)
In this photo illustration, the FTX logo and mobile app ads are displayed on screens on November 10, 2022 in London, England. Bahamas-based crypto exchange’s bigger rival, Binance, has walked away from a potential bailout as FTX grapples with a spate of customer withdrawals that have sparked a liquidity crunch.
However, it seems that the problems of the digital coin trading company are not over yet.
Aside from its financial ruin, FTX is facing an alleged cybersecurity breach.
While the massive hack has not yet been confirmed, officials are warning users to uninstall their apps.
AFR reported that the FTX breach may have taken more than $600 million out of users’ wallets.
Rumors of FTX hack would drain wallet
According to the latest report from NDTV, transfers, which the crypto exchange company failed to address, took place on the same day that FTX filed for bankruptcy.
(Photo: Photo by OLIVIER DOULIERY/AFP via Getty Images)
This illustration photo shows a smartphone screen with the logo of FTX, the crypto exchange platform, with a screen with the FTX website in the background in Arlington, Virginia on Feb. 10, 2022. – Sam Bankman-Fried donned a suit and buttoned up this week, leaving his favorite hoodie and dark T-shirt for a US senatorial hearing.
Also Read: FTX Update: Sam Bankman-Fried’s Stock Market Collapse Destroys His $16 Billion Wealth
After several reports, FTX warned users not to install app upgrades through its official Telegram account. The company even said consumers should remove their applications.
“FTX has been hacked. FTX apps are malware. Remove them. Chat is open. Don’t go to the FTX site as Trojans can be downloaded,” said an FTX account manager.
Affected cryptocurrencies include Solana, Binance Smart Chain tokens, and Ethereum tokens. Officials said these digital coins were transferred to decentralized exchanges, such as 1inch.
FTX is now investigating the breach
FTX General Counsel Ryne Miller said through his… official Twitter accountthat they are already investigating the alleged security hack.
He announced that FTX US and FTX are both taking precautions to move all their digital assets to cold storage.
The official further stated that they are already speeding up processes to mitigate the damage.
In the comment section, some Twitter users shared their thoughts. One even believed the breach was an inside job.
Since FTX is still investigating the alleged hack, if you’re one of the concerned users, it’s best to wait for further announcements from the company.
You can check out his official Twitter post below for more details.
Following the Chapter 11 bankruptcy filings – FTX US and FTX [dot] com has taken precautions to move all digital assets to cold storage. The process has been speeded up tonight – to limit the damage in the sight of unauthorized transactions.
— Ryne Miller (@_Ryne_Miller) Nov 12, 2022
In addition to FTX, other companies are also facing serious security breaches.
Earlier, hackers from Medibank released patient records on the Dark Web.
Two new iOS 16.1 bugs would also allow cybercriminals to execute iPhone commands.
Keep your tabs open here on TechTimes for more news updates on the FTX hack and other security threats.
Related article: FTX Crypto Exchange Bankrupt! CEO Bankman-Fried resigns; Should consumers be concerned about it?
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Written by Griffin Davis
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