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Crypto exchange FTX has collapsed amid investigation into “unauthorized transactions”.

Crypto exchange FTX has collapsed amid investigation into “unauthorized transactions”.

Collapsed crypto exchange FTX said on Saturday it was moving funds to offline storage after a series of “unauthorized transactions” that analysts said saw millions of dollars in assets withdrawn from the platform.

FTX US General Counsel Ryne Miller said in a tweet on Saturday that the exchange was speeding up the process of cold-storing all digital assets “to mitigate the damage from monitoring unauthorized transactions.”

Cold storage refers to crypto wallets that are not connected to the Internet to protect against hackers.

Late Friday, Miller tweeted that he was “investigating anomalies with portfolio movements related to consolidation of FTX balances on exchanges.”

Hundreds of millions

Figures from Singaporean analytics firm Nansen showed a one-day net outflow from FTX of around US$266 million, with US$73 million withdrawn from FTX US alone.

FTX did not respond to Reuters’ request for comment.

Prior to Miller’s tweets, FTX officials appeared to confirm rumors of a hack on the company’s Telegram channel, with the exchange instructing customers to delete FTX apps and avoid its website, according to a CoinDesk report.

“FTX has been hacked,” an account administrator on the FTX Support Telegram channel wrote in a message, according to CoinDesk.

Reuters could not immediately verify the details posted on FTX’s private Telegram channel.

FTX, affiliate crypto-trading firm Alameda Research and about 130 of its other companies have filed for bankruptcy court protection from Delaware creditors, FTX said Friday.

The beleaguered crypto trading platform struggled to raise billions as traders in the US withdrew $6 billion from the crypto-token platform in 72 hours and rival exchange Binance this week called off a bailout deal.

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