The US DoJ aims to investigate where an enormous amount of FTX funds has disappeared.
The United States Department of Justice (DoJ), a federal executive department of the United States government tasked with the enforcement of federal law and administration of justice in the US, has reportedly launched an investigation into the crypto exchange FTX exploit.
According to the Bloomberg report shared on December 27th, the news was revealed by a person familiar with the matter.
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Bloomberg claimed that the criminal probe into lost digital assets is a separate investigation from Sam Bankman-Fried’s fraud case. The abnormal and suspicious activities took place between November 11th and November 12th, when an enormous amount of funds started moving from FTX and FTX US wallets. The cryptocurrency exchange claimed that at least 228,523 Ether (ETH) were transferred from FTX wallets.
After recording suspicious activity, FTX US General Counsel Ryne Miller used Twitter to confirm that the company was “investigating abnormalities with wallet movements.” On top of that, Miller claimed that crypto exchange moved unaffected funds to cold wallets to protect them.
On November 20th, blockchain analytics firm Elliptic claimed that the hackers made unauthorized transactions worth $477 million. The hacker allegedly swapped stolen Ethereum to RenBTC before bridging it to Bitcoin (BTC).
On November 29th, vlogger Tiffany Fong shared an interview with the FTX co-founder and former CEO, Sam Bankman-Fried, which claimed that the hack was performed by a former FTX employee or someone who had access to the computer of a former employee.
The latest update regarding the matter was shared by crypto analyst ZachXBT, who claimed that a part of the stolen funds was moved to Singapore-based exchange OKX through a Bitcoin mixer. OKX managing director Lennix Lai used Twitter to confirm that the company is “aware of the situation, and the team is investigating the wallet flow.”
