EDUSELL
Financial Market Examiner
Midas Crypto Vault
  • Home
  • Education
  • Forex News
  • Crypto News
  • Stocks
  • Reviews
No Result
View All Result
  • Home
  • Education
  • Forex News
  • Crypto News
  • Stocks
  • Reviews
No Result
View All Result
Financial Market Examiner
No Result
View All Result
Home Crypto News

FTX Stored Private Keys Without Encryption, Left Funds Vulnerable

Admin by Admin
December 14, 2022
in Crypto News
0
FTX Token Spikes By 60% In 24 Hours
0
SHARES
3
VIEWS
Share on FacebookShare on Twitter
MMC MMC

FTX’s new Chief Executive, John Ray III, has made some revelations during his testimony to the US House Financials Committee, which is conducting a hearing into the exchange’s unprecedented collapse.

One of the most concerning statements made by Ray during the testimony was that FTX stored private keys to crypto wallets without encryption, leaving customer funds worth millions vulnerable to theft and other malicious activities.

However, he added that the new management had taken concrete steps to secure over $1 billion worth of digital assets since taking over. Private keys allow users to access their funds held in crypto wallets and must be stored securely on systems that leverage encryption. According to security analysts, storing these keys in an unencrypted mechanism leaves them vulnerable to hackers or unauthorized transfers.

These unsecured funds could have been stolen in a number of ways, where hackers could obtain private keys through phishing or simply hacking the system.

FTX exchange wallets had, in November, faced a significant hack, with estimates by security firms Peckshield and Halborn stating that the exchange was compromised, losing an estimated $400 million. While the hacker’s identity is still unknown, Bankman-Fried spoke of “disgruntled employees and other bad actors” who may have stolen the private keys.

Bankman-Fried is accused of using customer funds to cover losses incurred by sister concern Alameda Research; the independent crypto hedge fund also helmed by SBF. Additionally, prosecutors also accused him of violating campaign finance laws by using customer funds to make millions worth of illegal political donations. Ray called these revelations “old-fashioned embezzlement,” stating,

Ray also stated that the exchange did not have a complete inventory of their crypto wallets nor any record of their location. He further added that the company was using QuickBooks for accounting.

Ray also told the committee that they were actively tracking the $477 million worth of crypto stolen from FTX on the 12th of November.

Meanwhile, a court in the Bahamas directed authorities to take Bankman-Fried into custody, with the ex-CEO likely to be extradited to the United States of America next year. The judge chose to ignore requests that SBF remains free on bail so that he can stick to his vegan diet and also have access to his allergy medicines and prescription Adderall.

Share on TwitterTweet
Share on Pinterest Share
Share on LinkedIn Share
Share on Digg Share
Tags: CryptoFTXFTX private keys
Institutional Trading Concept Institutional Trading Concept Institutional Trading Concept
ADVERTISEMENT
Previous Post

Binance Exchange Daily BTC Withdrawals Top $500M

Next Post

Following SBF Arrest, Crypto blame game back on US Senators

Admin

Admin

Next Post
Bithumb Largest Cryptocurrency largest Shareholder Exec Dies By Suicide

Following SBF Arrest, Crypto blame game back on US Senators

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Stay Connected

  • 99 Subscribers
  • Trending
  • Comments
  • Latest
AUD USD pair

Forex: AUD/USD Point To More Downside For The Aussie

October 20, 2022
yen and dollar

FOREX-Yen Flirts With Intervention Level As Dollar See Gains

October 11, 2022
Virtual stadium in the metaverse

Why Virtual Stadium Can Be the Next Big Thing in the Metaverse

January 26, 2023
USDD Depegs

USDD Stablecoin Depegs To $0.96, Tron (TRX) Dumped

December 12, 2022
What is Initial Coin Offering?

Initial Coin Offering (ICO)

0
What is staking?

Staking

0
What is Defi?

Defi (Decentralized Finance)

0
Differences between Axie Infinity and Decentraland

Axie Infinity and Decentraland: Features and Differences

0
AUD USD pair

AUD/USD falls from 7-month highs

February 2, 2023
What is Wiki Cat

What is Wiki Cat (WKC)?

February 1, 2023
FTX Group Interim Financial Update Contradicts Court Filing, Shows Exchange Had $1.43B In Cash

FTX Group Interim Financial Update Contradicts Court Filing, Shows Exchange Had $1.43B In Cash

February 1, 2023
Tesla Lost Millions In Crypto

Tesla Lost Millions In Crypto

February 1, 2023

Recent News

AUD USD pair

AUD/USD falls from 7-month highs

February 2, 2023
What is Wiki Cat

What is Wiki Cat (WKC)?

February 1, 2023
FTX Group Interim Financial Update Contradicts Court Filing, Shows Exchange Had $1.43B In Cash

FTX Group Interim Financial Update Contradicts Court Filing, Shows Exchange Had $1.43B In Cash

February 1, 2023
Tesla Lost Millions In Crypto

Tesla Lost Millions In Crypto

February 1, 2023
Financial Market Examiner

Get all the latest Financial Market (Crypto & Forex) news, updates and other relevant resources here.

Follow Us

Browse by Category

  • Crypto News
  • Education
  • Forex News
  • Gaming
  • Reviews
  • Stocks

Recent News

AUD USD pair

AUD/USD falls from 7-month highs

February 2, 2023
What is Wiki Cat

What is Wiki Cat (WKC)?

February 1, 2023

© 2022 Financial Market Examiner. - Designed by Mayconcept Solutions.

No Result
View All Result
  • Home
  • Education
  • Forex News
  • Crypto News
  • Stocks
  • Reviews

© 2022 Financial Market Examiner. - Designed by Mayconcept Solutions.

?>