FTX says it will make “every effort” to secure assets

The new boss of FTX, the now-bankrupt cryptocurrency giant, promised on Saturday that the company would do “everything to secure all assets” after unauthorized transactions that could result in the disappearance of hundreds of thousands of dollars.

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“FTX US and FTX.com continue to make every effort to secure all assets,” Raine posted on Twitter on Saturday, according to a statement from the group’s new CEO and head of restructuring, John Ray. Miller, Chief Legal FTX Officer.

“There was unauthorized access to certain assets,” John Ray confirmed.

It was replaced on Friday by Sam Bankman-Fried, the founder of FTX who just resigned. The cryptocurrency exchange platform, a much less regulated sector, was placed under Chapter 11 protection of the American bankruptcy law on the same day.

FTX officials did not provide details of the total number of transactions observed, but several hundred thousand dollars may have disappeared.

An analysis published on Saturday by cryptocurrency analysis firm Elliptic indicates that “24 hours after the bankruptcy filing (…), FTX’s portfolios were emptied of more than $663 million.”

In detail, “477 million dollars would have been stolen, and the rest will be transferred to safe storage by FTX”, Elliptic states.

FTX, which 10 days ago was still considered the second largest cryptocurrency platform in the world and valued at around $32 billion, was struck by lightning.

The company is now trying to reassure.

“Among other things, we are in the process of removing the trading and withdrawal functionality and transferring as many digital assets as possible to the new cold wallet custodian,” meaning a non-internet connected wallet meant to store cryptocurrency, explained FTX’s new boss. Posted the announcement on Twitter.

John Ray also said “an active investigation of the facts (…) was immediately initiated in response. We are in contact and coordinating with relevant law enforcement and regulators.

Friday marked a turning point for FTX after a week of turmoil. Its founder, 30-year-old Sam Bankman-Fried, considered one of the most influential achievements in the cryptocurrency world and a multi-billionaire so far, resigned and was replaced by John Ray in the process.

Then, overnight, FTX’s chief legal officer, Raine Miller, tweeted about an “investigation into anomalies with portfolio movements related to the consolidation of FTX balances between exchanges,” citing “fuzzy facts because other movements are unclear.”

Later, on Saturday morning, “unauthorized transactions” were observed and the platform “took precautionary measures to move all digital assets to cold storage,” he said.

“The process was expedited (Friday) evening – to minimize the risk when unauthorized transactions were noticed,” he said.

This discomfort came to light when press reports revealed that his Alameda Research Fund was investing in cryptoassets issued by FTX.com in a risky financial arrangement.

FTX’s troubles are also compounded by Binance, the first in the sector, to announce on Sunday that it was selling a cryptocurrency linked to the FTX group and on Tuesday offered to buy FTX.com before withdrawing on Wednesday.

The group is under investigation by New York’s Securities Exchange Commission and the Department of Justice, the New York Times said, citing sources familiar with the investigation.

And with the Miami Heat announcing that their stadium, FTX Arena, will be renamed, the fall in favor of the NBA widens.