REPORT: Bankrupt Crypto Outfit Hacked For $400M

CoinDesk reports:

The beleaguered crypto exchange FTX suffered a $400 million hack over the weekend, and at least one blockchain expert says the clues are point to a high-level insider who committed an amateur misstep that might have inadvertently revealed their identity. The attacker appears to have “had access to all the cold wallet storages which he exploited,” Dyma Budorin, co-founder and chief executive of blockchain security auditing firm Hacken, said Monday.

Hacken investigated blockchain transactions and found that the looter tried to send tether (USDT) stablecoin on the Tron blockchain multiple times unsuccessfully because they didn’t have enough TRX, the Tron network’s native token, in the wallet to pay for transaction fees. So the looter used their verified personal account on crypto exchange Kraken to send 500 TRX to the compromised wallet address to cover the transaction.

Read the full article. I don’t really know what all that means, but it sounds awful. Muttley laugh.

“It’ll be one of those dot-com bankruptcies that took 10 to 15 years to work out,” 507 Capital’s @ThomasBraziel says, predicting the legal road ahead for @FTX_Official.

He discusses the bankruptcy timeline and if users can expect to recoup their funds: https://t.co/ehfLmHkY53 pic.twitter.com/yA3LOd1C2P

— CoinDesk (@CoinDesk) November 14, 2022