FTX money was stolen, the company’s lawyer said
2022.11.22 13:20
FTX money was stolen, the company’s lawyer said
Budrigannews.com – According to James Bromley, a partner at the law firm Sullivan & Cromwell who is representing the debtors in FTX’s bankruptcy case in the District of Delaware, cyberattacks continue to pose a threat to the company’s assets.
On Nov. 22, during a livestream of FTX Trading’s bankruptcy proceedings, Bromley stated that the new CEO of FTX, John Ray, had presented fundamental objections with the intention of guiding the company, its remaining employees, and its funds through the controversial and public collapse.A core group of employees, according to the FTX co-counsel, have continued to work at the exchange to ensure the security of assets and records, but hackers have posed a threat since the company filed for Chapter 11 on Nov. 11.
Bromley asserted, “We’re not just talking about crypto assets, cash assets, or physical assets — we’re also talking about information, and information is an asset here.”Sadly, a significant number of assets have either been stolen or are missing.As previously stated, we have engaged sophisticated technology to protect against the hacks, but they continue. We are experiencing cyberattacks on the petition date and in the days that follow.
The attorney stated that as part of the proceedings, FTX had enlisted the assistance of a number of legal, cybersecurity, and blockchain analysis firms, one of which was Chainalysis. Chainalysis has previously provided information pertinent to U.S. government enforcement cases involving crypto.Bromley also said that another cybersecurity company was involved in the case, but he wouldn’t say who it was because he was worried hackers would use the information for their own gain.
During the collapse and bankruptcy of FTX, an unidentified individual had already removed 228,523 ETH from the exchange, later converting some of the funds into Bitcoin (BTC).The attacker had transferred approximately $200 million in ETH to 12 distinct wallet addresses as of November 21.
Related: Under Ray, who criticized former CEO Sam Bankman-Fried’s public comments regarding the scandal, reorganization at the leadership level was also a priority for FTX. The hacker is now the 35th largest holder of ETH.Bromley went on to say that the exchange had been “under the control of a small group of inexperienced and unsophisticated individuals” under Bankman-Fried, and that some or all of these individuals might have been compromised.
“At the same time of the run on the bank, there was a leadership crisis [at FTX]. The FTX companies were controlled by a very small group of people led by Sam Bankman-Fried. During the run on the bank, Mr. Bankman-Fried’s leadership frayed, and that led to resignations throughout the ranks.”
The livestreamed hearing was the first public hearing since FTX Group filed for bankruptcy on November 11, but court documents and media outlets continue to release new information about the company’s demise.
According to reports, Bankman-Fried, his family, and other high-ranking FTX executives purchased multiple Bahamas properties worth more than $121 million.Bromley said in court that an element related with Alameda Exploration purchased generally $300 million worth of land in the island country, yet didn’t unequivocally name the previous FTX Chief.
