- Researchers discovered USD 515 million worth of unusual cryptocurrency outflows from FTX accounts during the attack on Friday before the exchange acknowledged a breach.
- After what has been termed “crypto winter” in 2022, cryptocurrency markets declined dramatically from all-time highs of more than USD 68,000 in November 2021.
Bitcoin and other cryptocurrencies fell to a one-week low after an FTX Hacker drained the accounts of the recently insolvent crypto exchange FTX Trading Ltd. and started exchanging ether currency for bitcoin.
The hacker started exchanging stolen Ethereum funds from the attack on FTX, which occurred just hours after the exchange declared bankruptcy on November 12, over the weekend.
Researchers discovered USD 515 million worth of unusual cryptocurrency outflows from FTX accounts during the attack on Friday before the exchange acknowledged a breach.
According to blockchain security firm PeckShield, the attacker started exchanging currency starting with 5,000 Ethereum for Bitcoin on Sunday during the weekend.
According to CoinMarketCap, the price of one bitcoin has dropped by 2.65% to USD 16,131 in the past 24 hours. Due to the recent bankruptcy of FTX and volatility caused by the abrupt movement of coins, it fell earlier in the day to a one-week low of USD 15,943. Ethereum has fallen the same, dropping 3.64% to USD 1,130 on the previous day.
The FTX hacker’s subsequent action has further repressed markets. The global crypto market cap has decreased by 2.72%, according to CoinMarketCap, and now stands at USD 800.9 billion.
On November 6, the CEO of cryptocurrency exchange Binance Ltd. Changpeng Zhao, announced that he intended to liquidate Binance’s holding in FTX’s native token, FTT, to withdraw Binance’s investment in FTX. This was when the trouble for FTX started. That sparked FTX’s demise and generated rumors that FTX was bankrupt. The exchange experienced an illiquidity crisis, ultimately leading to its collapse.
After what has been termed “crypto winter” in 2022, cryptocurrency markets declined dramatically from all-time highs of more than USD 68,000 in November 2021.
It was fueled by a broad market decline and the collapse of the TerraUSD stablecoin ecosystem in May, which also caused Bitcoin to fall below USD 30,000 at that time. Bitcoin’s value has fallen 76% since last year, while Ethereum’s value has fallen 73%.
The FTX hacker’s identity is still unknown, though investigations are ongoing. Speculation abounds as to how this could have occurred, and the event’s timing, just hours after the official bankruptcy statement, has sparked even more controversy for the beleaguered exchange.
Other major cryptocurrencies that have fallen in the last 24 hours include the “meme coin” Dogecoin, which has dropped 7.9%; Solana, which has dropped 8.3%; and XRP, which has dropped 5.1%.