The hack took place on November 11, just hours after FTX filed for Chapter 11 bankruptcy.
As per reports, massive amounts of funds were transferred from crypto exchanges FTX and FTX.US.
SBF believes that the hack was either an insider job or someone who had unauthorized access
On Nov. 11, hours after the cryptocurrency exchange FTX and hedge fund Alameda Research filed bankruptcy, a sizable amount of funds was transferred out of the exchange. The mysterious transfers of the funds remain questionable to date, with some blaming the occurrence on hackers or insiders.
However, on Dec 27, the US Department of Justice (DOJ) launched an investigation into the missing $372 million from the crypto exchange FTX & FTX.US. Reports noted the US authorities have managed to freeze some of the stolen assets. The reports also noted that the DOJ’s investigation is separate from the SBF fraud case.
The investigation into FTX's missing funds is being led by the DOJ's National Cryptocurrency Enforcement Team, a group of prosecutors specialized in crypto investigations. The team is working with federal prosecutors in Manhattan who are prosecuting former FTX CEO and founder Sam Bankman-Fried.
However, according to disgraced FTX founder Sam Bankman-Fried, the incident was committed by either a former FTX employee or someone who had unauthorized access to a former employee's computer.
The meltdown of the SBF-owned crypto exchange FTX has resulted in billions of dollars in losses for investors and consumers. The collapse induced FOMO in the crypto market, as seen by the 20% drop in the industry's market valuation.
Following the bankruptcy filing of FTX, several FTX-exposed crypto exchanges experienced a liquidity crisis. However, the explosion in the crypto industry was triggered by the platform's founder SBF, who utilized FTX users' funds for personal purposes.
The platform's former CEO had previously been arrested in the Bahamas by government officials. Later, the SBF was extradited to the United States, where he was granted bail by a judicial court. Currently, the SBF is in California walking freely with a series of legal charges.
Experts believe that the SBF will face no legal challenges in the future because of its enormous donations to the United States government's campaigns.
What do you think, is the FTX million-dollar hack an insider or an outsider job? Please share your valuable thoughts in the comment section below.
Read also: Need for Security takes a Spotlight After Mango Markets Scam
