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More than $600 million was siphoned from the crypto wallets of FTX just hours after it filed for bankruptcy.
The company’s official Telegram channel informed users that they should not install any new upgrades or access FTX’s website and to delete all apps.
“FTX has been hacked,” reads one message sent through their support chat room and pinned by FTX General Administrator Ryne Miller, “FTX apps are malware. Delete them. Chat is open. Don’t go on FTX site as it might download Trojans”.

FTX Crisis

This evening, Miller disclosed on Twitter that the company has been moving all of its digital assets to cold storage because of an emergency situation happening today. He said “Process was expedited this evening – to mitigate damage upon observing unauthorized transactions”.
Some FTX holders reported their $0 balance in the wallet. It’s possible that this is due to an API issue, which would make it difficult for them access funds. On-chain data showed various Ethereum tokens as well as Solana and Binance Smart Chain moved from FTX’s official wallets exiting toward decentralized exchanges like 1inch. Both “FTX” and “FTX. US” are affected.

The transfers started on the same day the company filed for Chapter 11 Bankruptcy protection in the United States. This decision is due to the lost or misappropriation of billions of dollars in funds owned by the users.
There are theories the attacks are not coming from an outside source but it’s actually an insider of the company.

Speculations started on Twitter theorizing that these facts are attributable to someone inside Sam Bankman-Fried’s inner circle. Some people believe it’s SBF on the run.

The FTX login portal was down for all the users around midnight Eastern time, giving them a 503 error when they attempted to log in. This message is usually shown when servers are unavailable, commonly because it’s down for maintenance or unavailable for access.


All of this should not be happening, and the fear of these attacks could have easily been avoided if the company cared about putting cybersecurity measures into place (supposing it’s not an internal attack). Luckily, CryptoArmor is here to help.

With CryptoArmor’s Real Time Monitoring, none of this would have happened. Tracking data in real-time is essential to have a deep understanding of the current security situation of a protocol or an entire company.
This specific kind of cybersecurity practice would have stopped the hackers before even being able to do some damage.

This would be a solid solution to prevent this from happening again and to other companies.
With web3 hacks on the rise and the entire FTX matter, making your company stand out with a solid cybersecurity strategy is the strategy to conquer an increasing market share over your competitors.


CryptoArmor is a blockchain Cybersecurity-as-a-Service that builds proactive security strategies in order to keep your business and customers safe.
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