FTX Crypto Wallets See Mysterious Late-Night Outflows Totalling More than $380M
More than $380 million in crypto left bankrupt crypto company FTX’s wallets late Friday, with little clear explanation as to why.
According to on-chain data, various Ethereum tokens, as well as Solana and Binance Smart Chain tokens have exited FTX’s official wallets and moved to decentralized exchanges like 1inch. Both FTX and FTX US appear to be affected.
FTX US general counsel Ryne Miller tweeted that he was “investigating abnormalities with wallet movements related to consolidation of ftx balances across exchanges.”
Investigating abnormalities with wallet movements related to consolidation of ftx balances across exchanges - unclear facts as other movements not clear. Will share more info as soon as we have it. @FTX_Official— Ryne Miller (@_Ryne_Miller) November 12, 2022
The transfers, which have not been addressed officially by FTX leadership, come on the same day that the firm officially filed for Chapter 11 bankruptcy protection after apparently losing billions of dollars in user funds.
Many FTX wallet holders are also reporting that they are seeing $0 balances in their FTX.com and FTX US wallets.
On Twitter, members of the cryptocurrency community have speculated that the funds have been drained as part of some kind of an attack – pointing, as evidence, to the fact that some of the transactions appear to include notes containing lewd jokes and insults directed towards FTX founder Sam Bankman-Fried.
Others have speculated that the outflows could be coordinated by a member of Bankman-Fried’s inner circle. Twitter sleuth ZachXBT tweeted Friday night that “multiple former FTX employees confirmed to me that they do not recognize these transfers.”
As the wallet address became publicly known many of the transactions appeared to be trolls, with names like “cumsock.eth” and “downsyndromemonkey.eth”, hoping to get their vanity names cemented into a ledger that would likely be filed as a court document and read aloud by a judge.
By midnight eastern time, FTX’s login portal was unavailable (the site is still online) giving users a 503 error when they attempted to log in. A 503 error happens when the server is unavailable, commonly because it's down for maintenance or unavailable for access.
UPDATE (Nov. 12, 2022, 04:35 UTC): Adds additional information.