Failed crypto exchange FTX hacked, reports say

Cryptocurrency exchange FTX said in its official Telegram channel that it had been hacked and instructed users not to install any new upgrades and to delete all FTX apps, according to a report by Coindesk.

FTX and FTX US’s wallets appear to be hacked, with more than $600 million leaving the exchange late on Friday, the report said.

“FTX has been hacked. FTX apps are malware. Delete them. Chat is open. Don’t go on FTX site as it might download Trojans,” wrote an account administrator in the FTX support Telegram chat. The message was pinned by FTX general counsel Ryne Miller.

Mr Miller also tweeted on Saturday that the exchange 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,” the tweet read.

Mr Miller said on Twitter that FTX is expediting the process of moving digital assets into cold storage — which is unconnected to the internet — “to mitigate damage upon observing unauthorised transactions”.

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 decentralised exchanges like 1inch, the Coindesk report said.

Both FTX and FTX US appear to be affected, it added.

The transfers come on the same day that the Bahamas-based FTX commenced bankruptcy proceedings in the US following its collapse this week.

Many FTX wallet holders are also reporting that they are seeing $0 balances in their FTX.com and FTX US wallets, Coindesk reported.

FTX’s API appears to be down, which could account for this, the report said.