Court Proceedings Reveal FTX Being Advised By This Cyber Security Company After $600M Hack In November 2022

Cryptocurrency exchange FTX, which was hit by a major hack in November 2022 (estimated at more than $600 million), has sought the help of cybersecurity company Sygnia to secure its environment.

John J. Ray III, the new CEO of FTX, revealed the situation during bankruptcy court proceedings in Delaware, Coindesk reported.

The hack took place around the time FTX filed for bankruptcy protection and its former CEO Sam Bankman-Fried resigned.

"This case is about cybersecurity or the failure of cybersecurity," said Ray.

He added that Sygnia, a "highly technical cybersecurity firm," played a critical role in stopping the hacking and rebuilding a secure environment for FTX.

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Ray also expressed his concerns about the previous governance of FTX, led by Bankman-Fried, calling it weak.

He said, "FTX is probably a case study for how not to have a controlled environment for crypto... We had hot wallets in a system where multiple people had access to passwords."

Regarding the security of crypto assets, Ray commented, "Literally, one of the founders could come into this environment, download half a billion dollars worth of wallets on a thumb drive, and walk off with them and there'll be no accounting for that whatsoever."

The federal bankruptcy court is set to make a decision on Monday on whether to appoint an independent examiner to investigate the events that led to FTX's collapse.

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