FTX has detected a mysterious hack on the company’s official app, the exchange seems to have confirmed.
Some $600m has already been syphoned off but not much is known as to where the funds ended up.
FTX has published an official message on its Telegram channels telling consumers to immediately stop installing new updates and to immediately delete their FTX apps in what must be the most debilitating message ever posted by a business in the cryptocurrency industry.
“FTX has been hacked. FTX apps are malware. Delete them. Chat is open. Don't go on FTX site as it might download Trojans”, the administrator of the FTX Support Telegram chat wrote and pinned the message.
Both FTX and FTX US have been affected and tokens such as Solana and Binance have been moved out.
Ryne Miller, the company’s general counsel said: “Investigating abnormalities with wallet movements related to consolidation of FTX balances across exchanges – unclear facts as other movements not clear. Will share more info as soon as we have it.”
The news is simply devastating as it has come at the worst possible time with trouble continuing to pile on FTX.
Once touted as the best cryptocurrency exchange, the downward trajectory over the past few days has been unexpected to put it mildly.
First, FTX announced that it would need to be saved by Binance, a rival, and then it admitted having indeed used consumer funds and invested those into its CEO’s crypto trading company, Alameda Research.
Yet, those can be excused and somewhat brushed off as managerial short-sightedness. The fact that a multi-billion dollar business has ordered everyone to stop using its main product because it “might install Trojans” is perhaps a death toll for FTX.
On Saturday, FTX’s server was down showing 503 error to its users attempting to log in. How much has been lost and if anything has been lost at all remains to be confirmed officially by FTX.
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