'Substantial amount' of FTX's assets stolen or missing — bankruptcy counsel
James Bromley, a partner at law firm Sullivan & Cromwell representing debtors in FTX’s bankruptcy case in the District of Delaware, has said that assets at the firm continue to be at risk from cyberattacks.
In a livestream of FTX Trading’s bankruptcy proceedings on Nov. 22, Bromley said new FTX CEO John Ray had laid out core objections aimed at getting the firm, remaining employees, and funds through the controversial and public collapse. According to the FTX co-counsel, a core group of employees have continued to work at the exchange to ensure assets were secure and records maintained, but hackers have posed a threat since Nov. 11 when the company filed for Chapter 11.
“We’re not just talking about crypto assets, or cash assets, or physical assets — we’re also talking about information, and information here is an asset,” said Bromley. “Unfortunately [...] a substantial amount of assets have either been stolen or are missing. We are suffering from cyberattacks, both on the petition date and the days following, and we have, as I mentioned earlier, engaged sophisticated expertise to protect against the hacks, but they continue.”
The lawyer said that FTX had enlisted the help of several legal, cybersecurity, and blockchain analysis firms as part of the proceedings, including Chainalysis — the firm has previously provided information relevant to crypto-related enforcement cases by U.S. government agencies. Bromley added there was another cybersecurity firm involved in the case, but said he would not disclose its identity due to concerns hackers would benefit from the information.
An unknown actor already removed 228,523 Ether (ETH) from FTX amid the exchange’s collapse and bankruptcy, later converting some of the funds into
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