It is not yet clear whether the money was stolen and if so, by whom. FTX says “unauthorized transactions” were made. For that reason, the company is taking the digital money offline. Analysts say hundreds of millions of dollars have been taken from the collapsed crypto exchange.
FTX, meanwhile, is working with the police to resolve the issue and secure the funds. According to Ryne Miller, an FTX advisor, the money will go to so-called crypto wallets that are not connected to the internet. That should protect against hackers.
Bankman-Fried faces prosecution in the United States over suspicion of diverting the money. The 30-year-old founder of FTX lives in the Bahamas, where the crypto exchange’s headquarters are located. He was questioned there by the police on Saturday.
FTX already requested a postponement of payment on Friday
The problems at FTX started last week. The crypto exchange then started to falter due to the depreciation of its own currency, the FTT. As a result, the stock market faced liquidity problems. Competitive crypto exchange Binance announced its intention to acquire FTX, but withdrew that offer after an investigation of the books.
On Friday it was announced that the crypto exchange in the United States is requesting a deferment of payment, a preliminary stage of bankruptcy. Bankman-Fried also resigned as CEO.
For US Treasury Secretary Janet Yellen, the collapse of the crypto empire is proof that the digital coin market requires “very careful regulation”. “It shows the weaknesses of this entire industry,” Yellen told Bloomberg News on Saturday .