Get All Access for $5/mo

FTX Hires Financial Forensic Team To Probe Into the Missing Billions The new management at FTX has hired financial advisory company AlixPartners to investigate the matter

By Paromita Gupta

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

Bybit

On Wednesday, the Wall Street Journal reported that FTX, the bankrupt crypto exchange, was hiring a financial forensic team to look into the missing billions. This move comes by the company's new management headed by John Ray III, the new CEO and chief restructuring officer of FTX.

For undertaking the probe, financial advisory company AlixPartners was chosen and would be led by Matt Jacques, former Securities and Exchange Commission (SEC) chief accountant. The firm will be conducting 'asset-tracing' to identify and recover the digital assets. It is also reported that Chainalysis , a blockchain analytics firm, was also enlisted for help.

The company's efforts will be complementing the work of the crypto exchange's bankruptcy counsel, Sullivan & Cromwell LLP, restructuring adviser Alvarez & Marsal, and Nardello & Co, an investigative firm.

The stolen digital assets since then have been moved through various crypto mixers and exchanges to protect its whereabouts. The hackers are supposedly using the 'peel chaining', which means to subdivide the entire holding into small amounts across multiple wallets. The hacker has converted the stolen ETH to BTC and has reportedly spilt 180.000 ETH across 12 wallets. As per Cointelegraph, the FTX hacker was the 35th largest holder of ETH as of 16 November.

The concerns over one of the former biggest crypto exchanges cropped up when, on November 2, Coindesk, a bitcoin and digital currencies website, reported discrepancies in FTX and Alameda Research's financial health.

Since then, it's been nothing but a ride down the rabbit hole.

On November 11, FTX, Alameda, and its affiliates filed for bankruptcy. Nansen reported an outflow of a rough $266.3 million.

On November 12, Nansen reported that FTX and FTX US saw a cumulative outflow of $659 million in 24 hours. FTX claimed that it saw a series of unauthorized transactions and that its application and website were hacked.

As per a Reuters report, at least $1 billion of customer funds could be missing, while the potential gap could be anything between $1 billion to $2 billion. As per court papers, the 50 largest asset holders collectively are owed more than $3 billion.

FTX's infamous co-founder Sam Bankman-Fried has lost a shocking $32 billion. The exchange's collapse led to the cryptocurrency market becoming chaotic and doubtful, with FTX's customers seeking claims for the missing asset.

The list of the agitated includes Tom Brady, Gisele Bündchen, Stephen Curry, Naomi Osaka, Kevin O'Leary, and Evan Luthra.

Paromita Gupta

Entrepreneur Staff

Features Writer with Entrepreneur India

Covering news and trends in AI and Metaverse segments. An avid book reader running her personal blog on the side. You may reach me at paromita@entrepreneurindia.com. 
News and Trends

"45% of All Ongoing Hydropower Projects in India are Ours": Patel Engineering

Patel Engineering reported a turnover of INR 4,400 crore in the last fiscal year, with a projected 10 per cent growth for the current year.

Side Hustle

'Hustling Every Day': These Friends Started a Side Hustle With $2,500 Each — It 'Snowballed' to Over $500,000 and Became a Multimillion-Dollar Brand

Paris Emily Nicholson and Saskia Teje Jenkins had a 2020 brainstorm session that led to a lucrative business.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Living

70% of Small Business Owners Experience Monthly Burnout. Follow These 3 Rules to Avoid the Same Fate.

Here are three guidelines to help entrepreneurs achieve balance, growth and success in both their professional and personal endeavors.

Franchise

Kick-Start Your Small Business With These Cost Effective Strategies

Starting a small business is an exciting adventure, brimming with both opportunities and challenges. A key to success is effectively managing costs from the outset.

Green Entrepreneur®

How Global Business Leaders Can Build a Sustainable Supply Chain

Businesses can build sustainable supply chains by leveraging technology to reduce environmental impact, optimize resources and track emissions while balancing operational efficiency and sustainability goals.