US prosecutors are probing the possible theft of $370 million in crypto just hours after FTX's bankruptcy
US prosecutors are looking into an apparent hack that resulted in the theft of $370 million from crypto exchange FTX.
The cybercrime occurred hours after FTX filed for bankruptcy on November 11.
The probe is separate from the fraud allegations against co-founder Sam Bankman-Fried.
US prosecutors are investigating a cybercrime that occurred on now-defunct cryptocurrency exchange FTX hours after the firm filed for bankruptcy last month, according to a report from Bloomberg.
More than $370 million worth of cryptocurrencies disappeared off of the exchange, and the Justice Department of has already frozen some funds as part of its probe.
An analysis from blockchain analytic firm Elliptic last month said the stolen crypto was exchanged for ether on decentralized exchanges. Some funds had also went through a so-called mixer that combines different types of cryptos to hide their origins.
FTX filed for bankruptcy on November 11, and new CEO John Ray said the following day that the firm was aware of "unauthorized access" to the exchange a day before the theft occurred.
The probe is a separate investigation from allegations of fraud against FTX co-founder Sam Bankman-Fried and is being spearheaded by the DOJ's National Cryptocurrency Enforcement Team. Charges connected to computer fraud bring a maximum sentence of 10 years.
Before his arrest earlier this month, Bankman-Fried suggested that the FTX theft may have been an inside job though no evidence has emerged that support that.
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