FTX confirms 'unauthorized access to certain assets,' working with law enforcement

Quick Take

  • Acknowledging a recent hack scare, FTX’s leadership says the firm is moving funds to cold custody and working with law enforcement.

FTX confirmed Saturday afternoon that there was "unauthorized access" to crypto it is holding, following a reported hack.

FTX's general counsel Ryne Miller tweeted a statement from new interim CEO John Ray, saying "we are in the process of removing trading and withdrawal functionality and moving as many digital assets as can be identified to a new cold wallet custodian. As widely reported, unauthorized access to certain assets has occurred."

Ray also says the firm is "coordinating" with law enforcement and regulators. The statement follows reports of a hack of user funds late Friday night, including large on-chain movements of funds from FTX's wallets.

The exchange went bankrupt earlier this week following a meteoric descent. That bankruptcy is on track to leave many users locked out of their funds indefinitely, making their transit across wallets a matter of tremendous interest for creditors.

Ray replaces Sam Bankman-Fried, the exchange's founder and, until days ago, CEO, who has rapidly fallen from grace as more scandals have emerged from the wreckage of his firms.

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