#Media Reveals Details of FTX Funds Rescue from Hacker

During the hack attack on FTX, consultant Kumanan Ramanathan used a personal hardware wallet, Ledger Nano, to protect vulnerable assets, according to a report by Wired.

On November 11, 2022, an unusual outflow of funds alarmed employees and management of the company. Estimating a total loss of over $400 million in cryptocurrencies, the firm managed to save a portion of the funds thanks to Ramanathan.

One of the first to notice the breach was Zack Dexter, CEO of LedgerX, who immediately contacted FTX management. Witnesses claim that the hacker was withdrawing funds in plain view of employees. #Sam #Bankman-Fried, the founder of the exchange, was not on-site at the time of the attack.

Gary Wang, CTO of FTX, faced resistance from colleagues who did not immediately decide to protect the assets, believing that they were already lost.

Dexter reached out to BitGo, the custodian, to request the creation of cold wallets for moving the remaining funds. They promised to complete this within half an hour, but FTX employees decided to find a temporary solution. Alvarez & Marsal, a consultant for the company, Ramanathan, offered to use his Ledger Nano as a temporary storage solution.

According to the publication, Gary Wang transferred from $400 million to $500 million to Ramanathan's account, which helped reduce further losses.

The funds remained on Ramanathan's wallet until BitGo created cold wallets. Later on, over $1.1 #billion was moved to new addresses.

An additional $400 million was transferred to the Securities Commission of the Bahamas "for security purposes."

Previously, the on-chain data marketplace, Arkham Intel Exchange, announced a reward of 100,000 #ARKM for information about the hacker who breached FTX.

Recall that in October, the CTO of the exchange admitted that the balance of the company's insurance fund was calculated based on a formula that included an arbitrary number and daily trading volume.

It was also reported that #FTX allowed Alameda Research to have a negative balance of $65 billion.