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

Post by stephc_int13 » Sat, Nov 12, 2022, 3:58 PM UTC

lordnacho wrote: post #582

stephc_int13 wrote: post #565

Earlier quoted context omitted.

So, what you're saying is that some hackers are siphoning all the "funds" for no reason at all? Or maybe, if they are hackers they can use/launder those in some way or another, but if this is SBF behind a mask then he can't? I am far from an expert about money laundering techniques, but I find it hard to believe that it is impossible to launder, given the context.

There's probably something these guys know that ordinary HN people don't know about how to extract the money. Perhaps there's a jurisdiction where it's made a lot easier.

Post by X6S1x6Okd1st » Sat, Nov 12, 2022, 3:59 PM UTC

AirStreamer27 wrote: post #610

X6S1x6Okd1st wrote: post #541

The hacker has spent the last 11 hours slowky and incrementally converting all the various tokens they got to ETH. They've been using a variety of different defi exchange and have eaten large slippage fees, at least once over 5M lost in slippage. We're not seeing any else, e.g. laundering through another exchange, splitting into different accounts, automating the liquidation of tokens to ETH, off loading ETH into a c…

How can USDC or USDT be frozen?

Post by drewmol » Sat, Nov 12, 2022, 4:00 PM UTC

vgatherps wrote: post #108

vishnugupta wrote: post #50

Earlier quoted context omitted.

The simplest explanation I have (occam’s razor) is a tie between 1.a and 1.b I’ve also heard rumors that inside bad actors pushed out a forced FTX app update to gain access to accounts. So the advisory is to uninstall FTX and not go anywhere near that website. Any money one has is unfortunately gone, wait for the bankruptcy proceedings to recoup it, if at all.

> I’ve also heard rumors that inside bad actors pushed out a forced FTX app update to gain access to accounts. If it's an inside job with this capability you'd likely already have such access? Only way is that somebody has access to push this, doesn't have access to the keys, and rewrites the app to send them assets or something. But the mass withdrawals imply the keys are compromised, and pushing the app would very…

Post by crazygringo » Sat, Nov 12, 2022, 4:02 PM UTC

ryanSrich wrote: post #586

crazygringo wrote: post #568

Earlier quoted context omitted.

> No one expects a multi-billion dollar exchange to vaporize over night. Except for everyone who has? We don't expect banks to vaporize because they're FDIC-insured with extreme regulations on their lending/investing, highly regulated. But crypto exchanges are the wild west. Totally vulnerable to both hacking and ponzi scheme fraud. Essentially zero regulation or customer insurance. And "vaporizing over night" is how…

I should have said most people, not no one. The reality is most people outside of the HN bubble trust billion dollar companies. Crypto or otherwise. And when I say trust, I don’t mean in the sense that they think the company is doing any moral good, but that they expect a product or service in return for payment. You don’t question that the gas you purchase at a gas station is in fact gas, and not water. Why would a…

Post by wly_cdgr » Sat, Nov 12, 2022, 4:06 PM UTC