FTX disintegrates in November last year that then led to a cascade of events that exacerbated the crypto market has been struggling.
The failed exchange once again made headlines as FTX reported more than $415 million worth of crypto was hacked.
According to a new report, the exchange return liquid assets of more than $5 billion that will then be used to pay off debt.
Some $2 million in cryptocurrency belonging to hedge firm Alameda Research was also stolen, the company disclosed in a statement.
However, this is the latest hack to happen on the platform, will it affect the confidence of the lenders?
Sam Bankman-Fried’s Wild Ride
Sam Bankman-Fried was there arrested in the Bahamas last month in some charges that can put people behind bars for up to 115 years.
After the announcement that SBF exists provided collateral, which allegedly moved more than $1.5 million using the account of the crypto exchange’s trading arm, Alameda Research.
Now, this isn’t the first time Bankman-Fried has been accused of moving funds. The platform hacked back on November 12 – a few days after the new CEO Ray Dalio disclosed that the Bahamian government may be behind the attack.
But the thinking of the crypto community can be summed up like this: “Let’s blame it on my other friends so no one will suspect me.”
The individual or group behind the hack has not been identified. But remember the Department of Justice formerly reaction to the November 12 exploitation, we can expect a full investigation by the DOJ or other relevant authorities in the matter.
Is FTX US Back?
Considering that the FTX platform as a whole lost billions of dollars and was only able to recover $5 billion, FTX US did not return as a major player in the crypto market.
This sentiment came from Bankman-Fried himself in a tweet on January 12, saying that the arm of the US platform is solvent and can give back the customer’s funds.
yup my understanding is and always is the best recovery scenario for our customers. I think that they are created must be all real possibilities; I think we can be a few weeks away from getting there in November. (US is solvent, it should make everyone whole.)
— SBF (@SBF_FTX) January 12, 2023
Although this is true, FTX US as a trading platform has lost the trust and confidence of its users after it was discovered that Bankman-Fried misappropriated customer funds to fuel Alameda’s reckless trading strategy.
Crypto total market cap at $922 billion on the daily chart | Chart: TradingView.com
Meanwhile, the effect of this latest hack on market sentiment is likely to be minimal as the market rallied at the start of the year.
However, fear, uncertainty, and doubt about the fully recovered customer funds may increase due to this latest hack.
Bankman-Fried request not guilty to the charges thrown at him. But I amIf the court decides that it is not, customers will be relieved to know that the person who stole the money will spend the rest of his life in prison.
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