FTX faces potential hack, sees mysterious outflows totaling more than $600M • Hacker News Board

Re: FTX faces potential hack, sees mysterious outflows totaling more than $600M

#31

Post by TedDoesntTalk » Sat, Nov 12, 2022, 5:39 AM UTC

ec109685 wrote: post #24

fortran77 wrote: post #17

Earlier quoted context omitted.

I've been around the block a few times, and I've had people over the years tell me about an "investment" or a fund, or their brother-in-law who could get me 15% or more on my money. And every time I've been smart enough to say "no thanks." I must admit, I don't have a lot of sympathy for Madoff's victims. Especially the charities! If I donate money to a charity, I'd expect the money to go to help people or to further…

There was a constant drumbeat of high interest promises by these crypto companies, even the supposedly “safe” ones. And so many people thought it was a no lose proposition. E.g. 8% APR at FTX.us: https://mobile.twitter.com/ftx_app/status/141749746557453927...

Why haven’t they deleted this tweet by now?

Re: FTX faces potential hack, sees mysterious outflows totaling more than $600M

#32

Post by smt88 » Sat, Nov 12, 2022, 5:39 AM UTC

There's no way this is a coincidence. This is undoubtedly people who work(ed) at the company and were trusted with private keys trying to get away with some money while they can.

Re: FTX faces potential hack, sees mysterious outflows totaling more than $600M

#33

Post by iblaine » Sat, Nov 12, 2022, 5:40 AM UTC

zeven7 wrote: post #4

> 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. From FTX's general counsel[1], retweeted by FTX_Official. So that indicates it's not being sold off legitimately under some sort of liquidation proceedings. It could be insiders or it could be hackers. [1] https://twitte…

It’s unfortunate that what started out with altruistic motives, a method for decentralized anonymous asset exchange, is being derailed by opportunists. There was a time where a 51% attack was the biggest concern.

All that said, I’m not surprised at where we are today.

Re: FTX faces potential hack, sees mysterious outflows totaling more than $600M

#34

Post by groffee » Sat, Nov 12, 2022, 5:41 AM UTC

mudrockbestgirl wrote: post #9

zeven7 wrote: post #4

> 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. From FTX's general counsel[1], retweeted by FTX_Official. So that indicates it's not being sold off legitimately under some sort of liquidation proceedings. It could be insiders or it could be hackers. [1] https://twitte…

> Reports on crypto Twitter are that this is a hack It's really unfortunate to get "hacked" with such bad timing. You steal customer money and file for bankruptcy but now the bad hackers, probably from the Bahamas as well, take whatever is left and cash out. Oh no! /s But it's alright, SBF said he's sorry.

SBF takes "full responsibility".

Re: FTX faces potential hack, sees mysterious outflows totaling more than $600M

#35

Post by sam345 » Sat, Nov 12, 2022, 5:41 AM UTC

mudrockbestgirl wrote: post #15

laserbeam wrote: post #10

Knowing little about how ftx works... Is the article talking about customer accounts at FTX being drained? Or accounts belonging to FTX being drained?

FTX is a centralized entity, just like PayPal is. There is no such difference. As a centralized company, they are supposed to hold all customer funds in their own bank/wallet/whatever account(s).

iait may be centralized but there's no comparison to PayPal. PayPal does not commingle funds

Re: FTX faces potential hack, sees mysterious outflows totaling more than $600M

#36

Post by TedDoesntTalk » Sat, Nov 12, 2022, 5:41 AM UTC

mcast wrote: post #20

ww520 wrote: post #5

It's wild. The place is brazenly being robbed in public eyes. Is it under the Bahamas laws? What can anyone do?

Bahamas has an extradition treaty with the US. If SBF doesn’t flee he will definitely get indicted in US court

I don’t think SBF would be dumb enough to steal $400m right now when the whole world is watching his every move.

Re: FTX faces potential hack, sees mysterious outflows totaling more than $600M

#37

Post by [deleted] » Sat, Nov 12, 2022, 5:44 AM UTC

mudrockbestgirl wrote: post #30

Here is a view of the assets on-chain for anyone that's interested: https://debank.com/profile/0x59abf3837fa962d6853b4cc0a19513a... Currently at ~$390M. It looks like they're trying to swap most of the tokens they received into ETH on-chain.

[deleted]

Re: FTX faces potential hack, sees mysterious outflows totaling more than $600M

#38

Post by headsoup » Sat, Nov 12, 2022, 5:46 AM UTC

ackbar03 wrote: post #22

zeven7 wrote: post #8

Earlier quoted context omitted.

I reworded things to separate the first hand information (FTX_Official indicating they don't know what's going on) from speculation (app hacker rumors).

I saw an update on coindesk that they confirmed it was a hack on their official telegram channel? What a dumpster fire. But let's be honest, I think retail investors weren't getting anything back anyways. Probably only impacts creditors

Lol, a 'hack.' An unfortunately extremely convenient one that I'll almost guarantee specifically took customer funds, you know, after the bros already took their first cut.

Re: FTX faces potential hack, sees mysterious outflows totaling more than $600M

#39

Post by shorthistory » Sat, Nov 12, 2022, 5:49 AM UTC

1. Who is transferring the funds?

a. Bankman-Fried and associates

b. insiders (disgruntled)

c. outsiders (hackers)

2. Is it plausible that the transferred funds be laundered?

3. Can this altruism get any more effective?

This story is utterly fascinating. It keeps getting better and better. I remember thinking Mt. Gox was wild. This fraud is second only to Ponzi.

Re: FTX faces potential hack, sees mysterious outflows totaling more than $600M

#40

Post by fortran77 » Sat, Nov 12, 2022, 5:50 AM UTC

fbdab103 wrote: post #21

graeme wrote: post #11

Earlier quoted context omitted.

Thanks! Wow even better than I recalled To be fair there’s something to that idea. Market returns about 7% on average. Over six years that would be an opportunity cost of 50%. But, as you say there’s got to be some loss for choosing to put one’s money with a con artist I doubt there will be a crypto bailout as it seemingly didn’t get big enough to blow up anything outside itself. It also had an anti public relations…

>I doubt there will be a crypto bailout as it seemingly didn’t get big enough to blow up anything outside itself If politicians wanted to make crypto bros whole, I would lose my mind. I doubt I am the only one, and I would hope that would be scene as a political death sentence to endorse such a proposition.

Some California congresspeople wanted to bail out dot-com speculators during the 2000 crash, at least of their tax oblications:

https://www.bizjournals.com/sanjose/stories/2001/07/30/daily...

(I was opposed to this. I purposely didn't exercise stock options that I couldn't or wouldn't sell immediately because I knew about the tax liability. I don't believe the defense that someone who wants to speculate in stock options just didn't know about the taxes. People who wish to speculate with complicated forms of investors should be prepared to take all the risk.)