FTX funds moved to a common wallet raising suspicion

As part of the ongoing saga with crypto exchange FTX and tensions with Binance, there has been a major selloff of FTX Token and the companies associated with the FTX Group had crumbled.

On Friday, FTX CEO Sam Bankman-Fried resigned from the exchange and it was revealed that FTX was to file for Chapter 11 bankruptcy. Following this news, on-chain data shows that multiple FTX wallets were transferring massive amounts of funds to a shared Ethereum wallet address. Over the course of just two hours from November 11th, the address received over 83,878 in ETH – which translates to more than $105.3 million. The address is still seeing funds come in.

The transfers started at 21:20 ET on Friday night, with the timing raising suspicions about FTX’s intent. While it might be the start of the bankruptcy process, some suggest that it might indicate more malicious intent.

The funds from the FTX wallet that went to the shared Ethereum wallet were moved to new addresses. On-chain data shows that 8,000 ETH was moved from Solana to one of the new addresses in the early hours of Saturday.

While a hack can’t be ruled out, it would be more likely that the attacker would have moved funds to their own wallet, rather than a shared account.

As the news of FTX’s filing for bankruptcy and Bankman-Fried’s resignation continues to draw attention to the exchange, the cryptocurrency community and on-chain analytics firms continue to watch how funds are exchanged and transferred.

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