Collapsed FTX hit by rogue $600 million outflows

Days after FTX filed for bankruptcy, the Crypto exchange platform witnessed unauthorised outflow of its assets under ‘suspicious circumstances’

Crypto exchange FTX was engulfed in more chaos on Saturday when the company said it had detected unauthorised transactions and analysts flagged that hundreds of millions of dollars of assets had been moved from the platform in "suspicious circumstances".

FTX filed for bankruptcy on Friday, one of the highest profile crypto blowups, after traders rushed to withdraw $6 billion from the platform in just 72 hours and rival exchange Binance abandoned a proposed rescue deal.

The exchange's dramatic fall from grace has seen its 30-year-old founder Sam Bankman-Fried, known for his shorts and T-shirt attire, morph from being the poster child of crypto's successes to the protagonist of the industry's biggest crash.

Bankman-Fried, who lives in the Bahamas, has also been the subject of speculation about his whereabouts. On Saturday he told Reuters that he was in the Bahamas, denying speculation on Twitter that he had flown by private jet to South America.

The turmoil at FTX has seen at least $1 billion of customer funds vanish from the platform, sources told Reuters on Friday. Bankman-Fried had transferred $10 billion of customer funds to his trading company, Alameda Research, the sources said.

New problems emerged on Saturday when FTX's U.S. general counsel Ryne Miller said in a Twitter post that the firm's digital assets were being moved into so-called cold storage "to mitigate damage upon observing unauthorised transactions."

Cold storage refers to crypto wallets that are not connected to the internet to guard against hackers.