A Secret FTX Hack, Hong Kong Warn Crypto Firms: Latest Crypto Updates
Nova Reyes
Markets Navigator
Many are saying that the crypto industry is going through some sort of drought. However, we’ve returned with a blog post dedicated to the latest crypto news, transforming this drought into excitement. Given the fast-paced nature of digital life, it can be challenging to keep up with daily crypto news. To address this, Coin Informer has committed to posting weekly updates on the latest crypto developments. Read on for the top updates from the past few days to stay informed.
A Secret $400 Million Hack of FTX Solved, Three Individuals Being Charged
Data as of 2024-02-06 (UTC). Prices and volumes can change rapidly.
On January 31, 2024, a district court in Washington D.C. charged three individuals—Robert Powell, Carter Rohn, and Emily Hernandez—with executing a $400 million hack of FTX in 2022. They utilized a series of SIM-swap attacks to steal virtual currency.
The court case file reveals:
- On or about November 11, 2022, Powell directed co-conspirators to perform a SIM swap on the cellular account of an employee of Victim Company-1, maintained by AT&T.
- On the same day, a co-conspirator provided Hernandez with a fraudulent ID containing the personal information of Victim Company-1’s employee, which she used to impersonate that individual at a service provider store in Texas.
- From November 11 to November 12, 2022, co-conspirators transferred over $400 million in virtual currency from Victim Company-1’s wallets to wallets controlled by them.
This hack occurred just hours before FTX filed for bankruptcy. While the court documents do not explicitly name FTX, it is widely understood that Victim Company-1 refers to FTX. According to Elliptic, a blockchain security firm, FTX experienced numerous unauthorized transactions totaling around $400 million shortly before its bankruptcy filing.
Rumors suggest that the co-conspirators transferred the stolen tokens to Kraken.
John J. Ray III, the current CEO of FTX, stated that FTX’s inadequate security and disorganized systems facilitated this hack, describing the situation at that time as 'Pure Hell.'
Pro-Crypto Nayib Bukele Declared Himself as El Salvador’s President for Second Term
On February 5, 2024, Nayib Bukele shocked both the crypto and political worlds by declaring himself president of El Salvador for a second term. Bukele is known for adopting Bitcoin as legal tender during his first term, making El Salvador the first country to do so. He has also implemented several strategic decisions to advance crypto adoption.
While many political experts criticize his controversial approach to re-election, the crypto community views his presidency positively, anticipating advancements in the crypto sector under his leadership.
Hong Kong Warns Crypto Exchanges to Apply for VARP License Before February 29
On February 6, 2024, Hong Kong’s government issued a warning to all crypto exchanges to apply for a VATP (Virtual Asset Trading Platform) license by February 29. Firms that fail to apply may face closure by May 31.
Currently, OSL and Haskey Exchange are the only exchanges to have obtained VATP licenses in Hong Kong, with fourteen other firms having submitted applications.
Stay Tuned!
The crypto world is constantly evolving, with new stories emerging daily. Whether it’s drama or significant developments, staying informed is essential for crypto enthusiasts. Coin Informer is your ultimate source for top news stories in the crypto industry. Stay tuned for our upcoming updates to remain up-to-date.
Sources: CoinMarketCap · CoinGecko