FTX cryptocurrency bankruptcy began with “Unauthorized Transactions”!

DataBreachToday.com reported that “Bankrupt cryptocurrency exchange platform FTX says unsanctioned actors made off with customers' digital assets, initiating a scramble to cut off digital wallets from the internet.”  The November 14, 2022 report entitled “'Unauthorized Transactions' Lead to Missing Funds at FTX” (https://tinyurl.com/4jnumzjy) included these comments:

FTX filed for bankruptcy Friday, and its founder and CEO, Sam Bankman-Fried, stepped down after the platform entered a liquidity crunch caused by a sudden loss in consumer confidence.

Investors - including Bankman-Fried's main rival, Binance CEO Changpeng Zhao - initiated a sell-off of FTC's native cryptocurrency token FTT days after trade publication CoinDesk revealed that a crypto hedge fund also run by Bankman-Fried was using FTT tokens as loan collateral.

The Wall Street Journal reports that FTX also lent customer funds to the hedge fund Alameda Research. Multiple media outlets say the U.S. Department of Justice and the Securities and Exchange Commission are investigating.

The company's Telegram account pinned a message on Monday saying that the Securities Commission of The Bahamas launched an investigation into the case. The new CEO will handle the liquidation of assets and bankruptcy issues, it said.

The company is headquartered in the Bahamas.

Very disturbing, but hardly a surprise!