In a swift response to a major security breach last year, the FTX cryptocurrency exchange protected a significant portion of its assets. Unusual withdrawals on Nov. 11, 2022, raised alarms among the FTX team. Consequently, the exchange reported losses exceeding $400 million. However, the timely intervention of Kumanan Ramanathan, a consultant from Alvarez & Marsall, was pivotal in preventing further losses.
Ramanathan’s Ledger Wallet Shields FTX Assets
FTX staff were wary of potential delays in activating BitGo’s cold storage wallets as the situation grew tense. So, the need for an immediate solution was vital. Ramanathan, understanding the gravity of the situation, stepped forward. He offered his personal Ledger Nano hardware wallet as a temporary haven for the company’s assets. Significantly, this move shielded between $400 and $500 million of FTX’s cryptocurrency. The transactions, overseen by former CTO Gary Wang, were instrumental in curbing additional financial damage.
Once BitGo had its cold storage wallets operational, the assets found a more permanent home. Additionally, FTX collaborated with BitGo, securing over $1.1 billion in total, as revealed by a Wired investigation. Moreover, another $400 million was transferred to the Securities Commission of the Bahamas to bolster their protective measures.
This episode unfolded shortly after the exchange’s former CEO, Sam Bankman-Fried, sought Chapter 11 bankruptcy protection. The hacker’s identity remains a mystery nearly a year after the incident. However, in subsequent interviews, Bankman-Fried and Zane Tackett, FTX’s former head of institutional sales, hinted at the possibility of an insider’s involvement.
Stolen FTX Assets Shift to Bitcoin
Recent observations have noted considerable asset movements linked to the FTX hacker. The stolen funds transitioned from Ethereum to Bitcoin, utilizing cross-chain exchange services like Thorchain and Railgun. This strategy, known as chain hopping, is a tactic to obscure the funds’ origin.
Read Also: FTX Co-founder Admits to Faking Insurance Fund Balance
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