Criminal behind bankruptcy of the collapsed crypto exchange FTX

The American cryptocurrency exchange FTX tried to reduce the repercussions of losses on the exchange after declaring its bankruptcy in the past days, and withdrawing assets from it worth millions of dollars.

After the bankruptcy of cryptocurrency exchange FTX, it became clear that it was moving funds to offline storage after a series of "unauthorized transactions", in which millions of dollars in assets were withdrawn from the platform.

Half a billion dollars mysteriously disappears from collapsed crypto exchange FTX

The company said that nearly half a billion dollars have mysteriously disappeared from the collapsed crypto exchange FTX.

FTX, which has filed for bankruptcy, blamed "unauthorized transactions," suggesting that the funds were either stolen or hacked.

The exact amount of the lost cryptocurrency is also not clear, but analytics firm Elliptic estimated that $477 million is missing from the exchange.

The company's new CEO John Ray, who took over from company founder Sam Bankman-Fred, said FTX was removing the ability to trade or withdraw funds but recently the company moved its remaining reserves to offline wallets, known as cold storage, for their protection.

Another $186 million transferred from FTX accounts

Elliptic co-founder and chief scientist Tom Robinson said:"Another $186 million moved from FTX accounts, but that may have been moving FTX assets into storage"

FTX's attorney general, Renee Miller, also said:" the company is coordinating with law enforcement and regulators".

The company has estimated assets between $10 billion and $50 billion, and has listed more than 130 subsidiaries around the world, according to its bankruptcy filing.

The disintegration of the giant exchange sends shock waves across the industry, as companies that backed FTX write down investments and the price of bitcoin and other digital currencies plummets. Politicians and regulators are calling for stricter supervision of impractical industry. .

Until recently, FTX was one of the largest cryptocurrency exchanges in the world. It spent billions of dollars as it sought bankruptcy protection, after a failed bailout from rival trading platform Binance.

 Experts say the saga is still unfolding "We will have to wait and see what the ramifications are, but I think we will see more dominoes fall and a lot of people will lose their money and their savings," said Frances Coppola, an independent financial and economics firm.

On a related note, Bitcoin price is currently trading at its lowest level in two years, after seeing its value plummet in the wake of the FTX crash.