Bankrupt digital asset exchange FTX.com is launching an investigation with law enforcement into a series of unauthorized withdrawals that affected some of its crypto wallets on Saturday, an executive said.
Ryan Miller, general counsel of FTX’s US exchange, tweeted a statement attributed to the firm’s new CEO, John J. Ray that once the unauthorized withdrawals were noticed, “an active fact-finding and mitigation exercise was immediately initiated in response.”
“We have contacted and are coordinating with law enforcement and relevant regulators,” he added.
Rival crypto exchange Kraken said it would assist in the investigation. The withdrawer moved some of the funds from a Kraken account to a wallet containing some of the stolen tokens on Saturday, blockchain security firm Hacken.io said, citing transaction data. Kraken was then able to identify the attacker by checking its data platform for the original address, its chief security officer Nick Percoco said in a tweet.
FTX began moving some of its assets into offline wallets after filing for bankruptcy on Friday, Miller said earlier in a tweet. It later accelerated those moves “to mitigate the damage of monitoring unauthorized transactions,” he added. Miller stretched out to Percoco via Twitter to ask if the two could work together.
“We can confirm that our team is aware of the identity of the account associated with the ongoing FTX hack, and we are committed to working with law enforcement to ensure they have everything they need to adequately investigate this matter,” said a Kraken spokesperson said in a text to Bloomberg News.
The attacker was “rapidly converting” some of the stablecoins and tokens gained from the theft into ether, blockchain analytics firm Elliptic said earlier Saturday using decentralized exchanges. He valued the pile of stolen assets at more than $400 million.
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