Warning to Other Exchanges from Failed Cryptocurrency Exchange FTX!

in distress cryptocurrency exchange FTX said that unauthorized fund transfers from FTX Global were sent to other exchanges via crypto wallets.

“Other Exchanges Should Be Aware of Illegal Funds Sent To Them”

In the statement made on the official Twitter account of the company, the following statements were included:

“Exchanges should be aware that some funds transferred from FTX Global and related borrowers without authorization on 11/11/22 were transferred to them via intermediate wallets. Exchanges should take all measures to ensure that these funds are returned to the bankruptcy administration.”

Blockchain research firm Chainalyasis said funds stolen from the company were on the move and warned exchanges to be on the alert if a hacker tried to cash out.

No explanation was made about which exchanges the stolen funds were sent to or the amount of these funds.

(1/2) Exchanges should be aware that certain funds transferred from FTX Global and related debtors without authorization on 11/11/22 are being transferred to them through intermediate wallets.

— FTX (@FTX_Official) November 20, 2022

This development follows news that a person who allegedly hacked FTX earlier on Sunday converted more than $300 million in Ethereum to Bitcoin after holding it for a while.

The identity of the person who dumped the FTX is unknown. While many say a hacker was able to drain funds from the embattled exchange that has filed for Chapter 11 bankruptcy protection, others think the dubious outflow may be an insider attempt.

Ray, a lawyer who also managed the bankruptcy of energy giant Enron, was called in to lead the restructuring of FTX. The exchange filed for bankruptcy on November 11.

“I have never seen in my career as much as here a complete failure in corporate controls and a complete lack of reliable financial information,” Ray said.

*Not investment advice.