FTX says $415 million lost in hack

According to the BBC, collapsed cryptocurrency exchange FTX says that around $415m (£338m) of crypto has been stolen by hackers. About $323m was hacked from its international exchange and $90m from its US platform since the firm filed for bankruptcy, FTX’s CEO says.FTX co-founder Sam Bankman-Fried has been accused of stealing billions of dollars from FTX users to pay debts at his other firm, Alameda Research. Mr. Bankman-Fried has pleaded not guilty to fraud charges.

ESET’s cybersecurity expert Jake Moore commented: “FTX has not only damaged trust in the way people view cryptocurrencies but the crypto industry as a whole. Consumers need reassurance that their money will be safe from external interception as well as internal fraud but this situation has put a lot of forward thinking work on the backfoot. Over the last decade, digital assets have boomed and a prominent future loomed but recent events have damaged assurance and therefore customers remain even more cautious of their funds. Cryptocurrency prices have also mirrored this confidence in plummeting greatly over the last year which could take many years to recover to previous heights. The success of crypto currently exchanges hangs in the balance but it is likely to dip even lower before the situation and faith is restored.

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