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Gungun Bhatia
Dec 8, 2022
by Gungun Bhatia

FTX Employs Forensics Teams to Track Down Clients' Lost Billions

FTX Forensics Teams

Table of contents

  1. Employment of Forensics Teams
  2. Interview With Sam-Bankman Fried
  3. Transfer of Assets to New Wallet Address
According to reports, the new administration of the insolvent cryptocurrency exchange FTX has recruited a group of financial Forensics Teams to find the lost client's cryptocurrency valued at billions of dollars.

Employment of Forensics Teams

According to a December 7 Wall Street Journal article, financial advice firm AlixPartners, which is run by former Securities and Exchange Commission (SEC) top accountant Matt Jacques, was nominated for the position.

It is thought that the Forensics Teams would be charged with carrying out asset tracing to locate and retrieve the lost digital assets, which will support the restructuring work being done by FTX. A total of $450 million worth of assets were stolen from the wallets controlled by FTX and FTX.US on November 11.

Interview With Sam-Bankman Fried

In an interview with cryptocurrency writer Tiffany Fong that was captured on November 16, former CEO Sam Bankman-Fried stated that he had whittled it down to eight individuals. He was close to identifying the hacker, who was perhaps a former employee or someone who placed malware on an ex-employee's computer.

A lawyer for FTX debtors claimed on November 22 that a large number of assets have either been stolen or are missing from FTX. At the time, blockchain analytics companies like Chainalysis had been hired to assist with the case. Since then, the FTX assets have been stolen and are currently being laundered through several exchanges and mixers for cryptocurrencies.

Transfer of Assets to New Wallet Address

The hacker moved their Ether (ETH) assets to a new wallet address on November 20 and then exchanged part of the ETH for an ERC-20 variant of Bitcoin before connecting the money to the BTC Network.

Then, on November 29, they moved the BTC through a cryptocurrency mixer and onto the OKX exchange using a laundering method called peel chaining, which breaks the assets into progressively smaller quantities across many wallets.

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FTX Employs Forensics Teams to Track Down Clients' Lost Billions
Gungun Bhatia
Gungun is an enthusiastic writer that likes to create content for various aspects of the blockchain and crypto industry. She carries out extensive research and provides readers with informative and high-quality material.

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