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US Department of Justice probing $372M FTX exploit: Report

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US Department of Justice probing $372M FTX exploit: Report

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US Department of Justice Probing $372M FTX Exploit: Report

The US Department of Justice (DOJ) is reportedly investigating a massive cryptocurrency exploit which saw malicious actors steal $372 million worth of cryptocurrency from derivatives exchange FTX.

This revelation comes after reports earlier this month of the exploit, which involved two separate attacks on the exchange. According to the reports, hackers accessed the exchange’s hot wallets, transferring them out of the exchange.

What Was Stolen?

The attack saw 11 digital assets stolen, including Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Tron (TRX), Cardano (ADA), Litecoin (LTC), and EOS. Most of the stolen assets have been traced to a hacker using the pseudonym “GeXeS.”

DOJ Investigating

The U.S. Department of Justice is reportedly investigating the case and has asked for information on the attack from exchanges connected to the hack, according to The Block. It is believed that the DOJ is seeking to determine whether cryptocurrency exchanges, like FTX and others, have adequate anti-money laundering protocols in place.

Impact on the Crypto Market

The attack had a strong impact on the world of cryptocurrency. Following the exploit, several large exchanges, including Binance and Coinbase, froze transactions associated with the stolen funds, while FTX created a special fund to reimburse its users who were affected.

The attack highlighted the potential risks of centralized exchanges, and has led some in the cryptocurrency space to call for greater security protocols and better decentralized solutions.

Preventative Measures

The best way to protect against these types of attacks is with multi-signature and air-gapped wallets, cold storage solutions, and other security protocols. Furthermore, users should ensure that they are only dealing with exchanges that are compliant with applicable laws, regulations, and AML/KYC procedures.

Overall, while the exploit was highly damaging and could have been avoided with stronger security measures, it also serves as a potent reminder that users should never store large amounts of crypto assets on centralized exchanges, and always opt for more secure storage solutions.

Today, reports have surfaced that the United States Department of Justice is investigating the mysterious $372 million exploit that took place at the crypto exchange FTX.

FTX, a prominent crypto derivatives exchange, has remained quiet regarding us much about the exploit since it occurred last week. The cryptocurrency exchange reported a strange movement of tokens from its cold wallets’ address to an unknown destination.

The incident reportedly took place on May 7, 2021 and was immediately identified by FTX, with the company alerting its users of a large transaction from its cold wallet address. FTX later claimed they successfully blocked $351 million out of the $372 million worth of tokens.

This week, the U.S. Department of Justice announced that an investigation is taking place to identify the criminals behind the exploit. The Department of Justice’s Financial Fraud and Asset Forfeiture Section is looking into the case.

At the time of this report, no additional information about the incident or investigation has been released by the US Department of Justice or FTX.

The incident has raised many questions about the security measures taken by crypto exchanges to protect users’ funds from being hijacked or stolen.

The crypto community has responded to the news of the investigation and urged cryptocurrency exchanges to ensure they have robust security protocols to safeguard users’ funds.

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