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Unauthorized Transactions Detected, FTX Says

UNITED STATES – New developments tonight in the fallout for crypto exchange FTX as the company says it has detected unauthorized transactions.

Published

2 years ago

November 12, 2022

Our News

NASSAU, BAHAMAS – New developments tonight in the fallout for crypto exchange FTX as the company says it has detected unauthorized transactions.

FTX analysts have flagged millions of dollars of assets moved from the platform in what the company calls “suspicious circumstances”.

Sources telling Reuters that at least $1 billion of customer funds have vanished from the platform. Sources say the firm’s founder Sam Bankman-Fried had transferred $10 billion of customer funds to his trading company, Alameda.

The new problems emerged Saturday when FTX’s U.S. General Counsel Ryne Miller said in a tweet the firm’s digital assets were being moved into cold storage “to mitigate damage upon observing unauthorized transactions.”

U.S. Securities Exchange Commissioner Hester Peirce calling the implosion of FTX a catalyst for regulators to do the necessary due diligence in the best interest of customers.

FTX filed for bankruptcy on Friday, after traders rushed to withdraw $6 billion from the platform in just 72 hours and rival exchange Binance abandoned a proposed rescue deal.

The story sent shockwaves throughout the financial market with industry leaders weighing in on what some are calling the worst week, in the worst year.

Custodia Bank CEO and Blockchain Expert Caitlin Long telling CNBC the insolvency FTX had all along is being revealed.

The Securities Commission of The Bahamas has frozen local assets of FTX. A statement this week confirming the commission also suspended the registration and applied to the Supreme Court for a provisional liquidator.

The commission said it is working with that provisional liquidator to obtain the best possible outcome for customers and other stakeholders.

Local Trader N’Nhyn Fernander speaking with Our News about the local implications, including potential job losses.

FTX relocated its headquarters to The Bahamas last year, announcing plans to invest around $60 million to develop a hotel, a commercial center, and a new headquarters at Bayside Executive Park. The status and fate of those projects are still unknown at this time.