FTX (2022) — Crypto Hack
Partially RecoveredDuring FTX's bankruptcy filing, ~$477M was drained from FTX wallets by an insider or external attacker exploiting access during the chaos.
Summary
During FTX's bankruptcy filing, ~$477M was drained from FTX wallets by an insider or external attacker exploiting access during the chaos.
How It Was Compromised — CEX via Insider
Hours after FTX filed for bankruptcy on November 11, 2022, large sums began leaving FTX wallets. It was later revealed that former FTX CTO Gary Wang and other insiders had access to a backdoor in FTX's code allowing Alameda Research to borrow client funds. The $477M drain occurred as bankruptcy proceedings began.
Fund Flow & Laundering Analysis
Funds rapidly converted via 1inch and other aggregators. Significant ETH moved through Ren Protocol before it shut down. Some funds traced to OKX exchange and Kraken. US DOJ recovered portions in 2023. Blockchain analytics tracked movements to accounts associated with former FTX executives.