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FTX Requests Assistance From Other Exchanges in Securing and Returning Lost Funds

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On Sunday, FTX appealed to its colleague’s crypto exchanges for assistance, stating that cash taken from the beleaguered exchange is being moved to other businesses via intermediary wallets.

In order to collect the monies and restore them to the estate managing FTX’s bankruptcy, the now-bankrupt business, led by new FTX Group CEO John J. Ray III, asked its peers to “take any measures” necessary.

FTX did not explicitly claim that the funds were stolen, but rather that they were transferred from FTX Global “without authority.” The corporation also did not explain whose wallet addresses the monies were associated with or which exchanges they were transferred to.

The ill-gotten funds in question were taken from FTX a day after the company declared Chapter 11 bankruptcy in Delaware. According to ZachXBT, a pseudonymous blockchain sleuth widely trusted by the DeFi community, the hack was worth around $650 million.

According to blockchain explorers for the individual networks, some cryptocurrencies were later bridged to other blockchains, including Binance Smart Chain, Polygon, and Avalanche.

According to DeBank, the Ethereum wallet linked to FTX’s missing cash had 98% of its approximately $258 million balance on Ethereum as of Sunday. It possessed 200,735 Ethereum (ETH) tokens and 8,184.9 Pax Gold (PAXG) tokens worth around $238 million and $14 million, respectively. It also holds 20 other cryptocurrencies worth less than $100.

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While Ethereum held the majority of the wallet’s value, it also contained $1.7 million on Binance Smart Chain, largely in the form of stablecoin DAI, and roughly $4 million on Avalanche, almost completely in Tether, another stablecoin.¬†

It’s possible that the money can be recovered in part through other exchanges. Binance froze $450,000 in money stolen from Curve Finance in August, accounting for nearly 83% of the $570,000 in missing Ethereum.

Binance was also able to retrieve a portion of the assets stolen in what was ultimately found to be an attack by the North Korean hacking cell Lazarus Group, which stole $622 million from Axie Infinity’s Ronin Network in April. Binance was able to collect $5.8 million from 86 distinct accounts.