After three days of FTX’s hack, the hacker continues to send funds from multiple official FTX wallets to a drainer address.
The collapse of the famous crypto exchange giant FTX has already been the headline of crypto’s financial history. The death rally of FTX seems to continue as the exchange got hacked after a few hours of filing a chapter 11 bankruptcy. According to officials, more than $600 million was drained from the platform to different addresses. Now, the hacker continues to deposit crypto assets to the FTX Drainer address 0x59A…32b even three days after the hack.
FTX Drainer Address Becomes A Regular Receiver
The ongoing FTX chaos has given a shockwave to the entire crypto market. Moreover, the recent hack of FTX amid the drama has created a wave of anger among its users, forcing the Security and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) to lodge an independent investigation on the security system and structure of managing users’ funds.
Recently, Blockchain security firm CertiK revealed through a tweet that multiple FTX addresses (FTX and FTX US) are still depositing crypto assets to the FTX Drainer address starting with ‘0x59A…32b’. For now, FTX Drainer Address holds nearly $62 million in crypto funds. Moreover, the FTX Drainer Address has received and swapped approximately 3.5 billion tokens since FTX’s hack on November 12. The hackers transferred over 2.8 billion of various profanity and meme tokens such as FTX Sucks, F*ck FTX, CRO Next, and others to meme and famous addresses.
What Lies Ahead For FTX?
According to on-chain experts, over $600 million in abnormal transfers were made, where some of the withdrawals were swapped from Tether to DAI and altcoins swapped to Ethereum. Officials of the FTX Community Chat confirmed the hack in the Telegram group and warned users by saying, “FTX has been hacked. FTX apps are malware. Delete them. Chat is open. Don’t go on the FTX site as it might download Trojans.” The message was further pinned by FTX General Counsel Ryne Miller.
Ryne Miller also confirmed halting trading and withdrawal functionality on the platform due to the unauthorized transfer of certain assets. He also added that FTX took a step of moving crypto assets to a new cold wallet custodian to eliminate the rapid transfers caused by the hack. However, there are still multiple risks for users as hackers still have access to FTX and FTX US wallets, as several users reported $0 balances in their wallets.
Following the demise of FTX, the founder Sam Bankman-Fried is under the radar of legal scrutiny as he has successfully managed to get the attention of regulatory entities regarding mishandling funds and corrupted balance sheets. Additionally, the Department of Justice (DOJ) has pushed FTX and SBF under scrutiny and is investigating the issue of possible fraud.
Also, following the negative impacts caused by FTX’s demise to the market, Binance has joined the rescue team to help out crypto firms in recovering their lost funds. Binance CEO Changpeng Zhao announced the introduction of an ‘Industry recovery fund’ to minimize the cascading adverse effects of FTX. Binance aims to help projects that have solid fundamentals and balance sheets but somehow experiencing a liquidity crisis to expand operations.
