US DOJ Begins Probing $400M FTX Hack

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The US Department of Justice has launched an investigation into a major FTX hack during the exchanges’ last few days of operation. FTX reported a loss of $400 million, but prosecutors believe there could be more.

Suspicions are reaching a fever pitch over a controversial FTX hack that happened during the collapse of the exchanges. Former CEO Sam Bankman Fried said he suspected several people were involved in the company.

Now experts are suggesting that the fingerprints left by the attackers indicate calculated inside work, prompting the US DOJ to look into the matter. Prosecutors are taking on the task in an ongoing case against FTX founder and former CEO Sam Bankman Fried, who faces charges of fraud in the United States and misuse of client funds.

The US DOJ couldn’t be far from the truth, as several FTX employees had also reported suspicious exits from the exchange between Nov. 11 and Nov. 12. They leaked the information to Twitter user ZachXBT who posted it, prompting mixed reactions from the community. members.

An hour after the trades ended, FTX General Counsel Ryne Miller tweeted that the exchange was reviewing anomalies in portfolio movements. The FTX Telegram support channel also pinned a message explaining that the company had been hacked and FTX apps had become malware. They asked customers to delete them and not to visit FTX official website because it will download Trojans in their systems.

Bankruptcy CEO John Ray III also confirmed the hack via Twitter on November 12. He posted the confirmation below Miller’s tweet and added that the team was in contact with law enforcement.

Although US prosecutors are adamant about pursuing this case, they will separate it from the Bankman-Frieds case to give the results independence. Experts have also flagged this development as insider work, as the hacker accessed a series of assets from FTX and FTX US websites alongside several cold wallets.

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