Ikigai Asset Management announces "large majority" of assets trapped in FTX

The founder and chief investment officer of the Californian crypto hedge fund Ikigai Asset Management wrote on Twitter, "Last week Ikigai was caught up in the FTX collapse. We had a large majority of the hedge fund's total assets on FTX. By the time we went to withdraw Monday mrng, we got very little out. We're now stuck alongside everyone else."

He announced that they would continue trading their remaining assets, and continue operating their venture fund. However, he said the future of the hedge fund was unclear, and likely to depend on what happens with FTX customer withdrawals.

"I'm pretty disgusted with the space as a whole and kinda humanity in general," he continued. "I'm at a loss for words at the depth & breadth of the pieces of shit that permeate crypto. So many fucking sociopaths were granted the opportunity to do so much damage. It's hard for me to imagine the space bouncing back quickly from this ordeal. Too many got burned too hard."

Huobi exchange announces $18.1 million is locked on FTX, mostly customer funds

Huobi announced to shareholders that they had $18.1 million in crypto assets on the FTX exchange, where they can't be withdrawn. They reported that approximately $13.2 million of those funds were customer assets. They announced that they would be taking an unsecured loan of up to $14 million from controlling shareholder Li Lin to cover the client assets.

AAX cryptocurrency exchange suspends withdrawals

The Hong Kong-based cryptocurrency exchange announced that they would suspend withdrawals, which they claimed was due to a system upgrade that went poorly. They've estimated it will taken seven to ten days for normal service to resume.

Users have been hesitant to believe this explanation, given the enormous shakeup in the industry lately, and the tendency for firms to be less-than-forthcoming when they are in major crisis.

Three days prior, the company had published a blog post claiming that AAX had no exposure to FTX and its affiliated companies, that AAX had stable reserves, and that user funds were never exposed to counterparty risk.

Flare token rug pulls or is exploited for $17 million

Chart showing the price of $FLARE (denominated in USDT) over the previous five days. The price hovered between $18 and $20, until briefly spiking to around $25 before plummeting to $0.000001754.FLARE/USDT (attribution)
Exploits and rug pulls of random tokens on BNB Chain are fairly commonplace, but typically the amount of money lost is fairly minimal. In this case, exploiters or insiders were able to siphon 3.9 billion $FLARE from the Flare project, which they swapped for just under $17 million.

This serves as a good example of how theft amounts shouldn't be naively calculated based on the token price before the theft × the number of tokens stolen. $FLARE was priced at around $18.25 before the attack, and a naive calculation would place the theft amount at $71 billion. However, the lack of liquidity caused the token price to plummet to $0.0000018, and the attacker ultimately ended up with around $17 million.

Over $4 million drained from DeFiAI

"Our contract has been hacked and has caused a lot of losses," wrote DeFiAI simply in their announcement. That same day, the project had announced the launch of a new website for their project.

The total funds stolen appear to be around $4.17 million, according to analysis by SlowMist.

Tokensoft intentionally publishes personal data of around 5,000 users who they believe are "bad actors"

Tokensoft is a project that aims to help web3 projects launch fairly, without the launches being gamed. The group evidently thought they had come across 5,000 or so users who had been gaming airdrops, to which their solution was to publish a list of private user data about those individuals. The list included full names, wallet addresses, and physical and IP addresses.

Several users replied to the message in shock that their data was exposed, saying they'd never done anything wrong. The Tokensoft employee replied, "If you made it on the naughty list...yes, shame on you....I shared your info, better luck next time".

The project later deleted the link from the Discord server, then tried to claim that it had never been posted at all, then issued a statement that "information was mistakenly posted in Tokensoft's social media channels".

Bahamas Securities Commission issues statement that they didn't instruct FTX to process withdrawals for Bahamian customers

The Securities Commission of the Bahamas issued a statement saying that "The Commission wishes to advise that it has not directed, authorized or suggested to [FTX] the prioritization of withdrawals for Bahamian clients."

This contradicted FTX's previous statement that "Per our Bahamian HQ's regulation and regulators, we have begun to facilitate withdrawals of Bahamian funds." The announcement that they would be processing withdrawals for Bahamian customers led to a slew of non-Bahamian customers trying to find ways to withdraw their funds via bribes and shady NFT deals.

Some have viewed FTX's choice to enable Bahamian withdrawals as evidence that they were trying to allow FTX employees and family members to get access to their funds on the exchange, even when most customers had no such access.

Crypto.com CEO admits company accidentally sent 320,000 ETH ($416 million) to another crypto exchange a few weeks prior

A Twitter user posted Etherscan screenshots showing a massive flow of crypto from the Crypto.com cryptocurrency exchange to another exchange, Gate.io. "Anyone know why Crypto.com would send 320k ETH (82% of their ETH today) to Gate.io on October 21?", they wrote. "And why Gate.io would send back to Crypto.com 285K ETH 5-7 days later?"

Crypto.com's CEO, Kris Marszalek, replied: "It was supposed to be a move to a new cold storage address, but was sent to a whitelisted external exchange address. We worked with Gate team and the funds were subsequently returned to our cold storage." He later clarified that all of the funds were returned.

Twitter users, reasonably, reacted in horror at the revelation that the platform had accidentally sent such a substantial portion of their funds elsewhere in a careless mistake, and that such a monumental mistake was even possible. They were lucky that they erroneously sent the funds to another exchange, and one who agreed to return the funds.

This is not the first time Crypto.com has erroneously transferred funds; in August of this year, they sued a woman to whom they'd accidentally sent $7.2 million that wasn't hers.

FTX claims it was hacked as more than $600 million is withdrawn

Telegram screenshot of a message by Rey: "Ftx has been hacked. All funds seem to be gone. FTX apps are malware. Delete them. Chat is open. Don't go on ftx site as it might download Trojans."Screenshot of a message from an FTX Telegram admin (attribution)
Over $600 million was mysteriously withdrawn from FTX and FTX US late on November 11, despite the company freezing withdrawals.

An FTX account administrator wrote on the FTX support Telegram, "FTX has been hacked. FTX apps are malware. Delete them. Chat is open. Don't go on FTX site as it might download Trojans". The message was pinned by FTX General Counsel Ryne Miller.

Miller later wrote on Twitter, "Investigating abnormalities with wallet movements related to consolidation of ftx balances across exchanges - unclear facts as other movements not clear. Will share more info as soon as we have it."

A Telegram admin subsequently wrote, "Not all hope is lost. Engineers have managed to retrieve substantial amount of funds," but no details were provided beyond that. A later announcement by Miller claimed that FTX had "initiated precautionary steps to move all digital assets to cold storage", suggesting some of the transfers may have been a part of that effort.

Many speculated that the so-called hack had been coordinated by insiders.

FTX files for bankruptcy, Sam Bankman-Fried resigns

Aaaand there it goes.

FTX announced that it had filed for Chapter 11 bankruptcy in the United States. Sam Bankman-Fried resigned as CEO.

SBF had spoken about trying to raise additional funds. In leaked Slack messages, he had allegedly written that "One could maybe say, if they wanted to be optimistic, that we have a lot theoretically in and/or potentially for the raise". No one was actually saying this.

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