US DOJ opens investigation into $400M FTX hack

The US Department of Justice has launched an investigation into a major FTX hack during the exchange’s final days of operation. FTX reported $400 million in damages, but prosecutors think it could be much higher.

Suspicions regarding a controversial FTX hack that occurred during the exchange’s meltdown are reaching a climax. The former CEO, Sam Bankman Fried, said he suspected several people were involved in the venture.

Now, experts suggest digital fingerprints left behind by attackers point to a calculated inside job, prompting the US DOJ to look into it. prosecutors are doing this amid an ongoing case against ftx Founder and ex-CEO Sam Bankman Fried, who is accused of defrauding the US and misappropriating customer funds.

The US DOJ couldn’t be farther from the truth, as several FTX employees also reported suspicious outflows from the exchange between November 11 and November 12. community members.

An hour after the transaction was made, FTX General Counsel Rain Miller tweeted that the exchange noticed abnormalities in wallet movement. The FTX Telegram support channel also pinned a message stating that the company had been hacked and ftx application Malware has been created. They instructed the customers to remove them and not to visit FTX official website as it will download trojan to their system.

Bankruptcy CEO, John Ray IIIalso confirmed the hack via Twitter on 12 November. He posted the confirmation under Miller’s tweet and said the team was in contact with law enforcement.

Although US prosecutors are adamant on pursuing the case, they will separate it from the Bankman-Fried case to give independence of outcome. Experts have also characterized this development as an inside job, as the hacker accessed a range of assets from the FTX and FTX US websites, as well as multiple cold wallets.

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