Paxos discovers $20 million worth of stolen gold tokens from the FTX breach
During the FTX breach, 11,184 Paxos Gold (PAXG) tokens worth $20 million were stolen.
Paxos, a blockchain and trust startup, has successfully recovered $20 million worth of gold tokens from the wallets of an unidentified hacker who compromised FTX in November.
The failing exchange of Sam Bankman-Fried was abused to the tune of $400 million in the month after its Chapter 11 bankruptcy filing. Paxos Gold (PAXG) tokens backed by physical gold held by Paxos were among the stolen assets.
Paxos swiftly froze 11,184 Paxos Gold (PAXG) worth $20 million from four wallets under hacker control. Approximately six weeks later, the team retrieved all of the assets.
PeckShield discovered based on on-chain evidence that Paxos moved the stolen tokens from addresses designated “FTX Accounts Drainer” by Etherscan to a null address and destroyed them yesterday. After this, the identical amount was minted into another wallet, completing the reclamation process.
Nevertheless, the Paxos recovery represents just a little percentage of the theft. At one time, the FTX drainer wallet had $302 million in ether belonging to the FTX reserves, almost all of which had been sold for bitcoin and could not be reclaimed.
John Ray III, the new chief executive officer of FTX, said in prepared testimony that the company did not encrypt private keys to its wallets and had implemented extremely lax security safeguards, both of which might have facilitated the breach.