Last week, Liquid an exchange platform was hacked and funds nearing $90M dollars were stolen. Elliptic is a blockchain analytics company. According to the nearly $97M funds have been hacked. Of the total hacked amount $45M in tokens were being converted to ETH through de-fi platforms like UniSwap, SushiSwap.
“This enables the hacker to avoid having these assets frozen — as is possible with many Ethereum tokens” Elliptic said in a blog post.
The hacker took ETH, BTC, XRP, TRX, and EWT and transferred it to separate wallets. According to the official data the exchange was targeted at MPC (multiparty computation), an advance cryptography technique where the keys generated by different parties can’t be seen by one another. A technique that many banks and companies use to keep its funds secure. After the attack, the assets were moved into cold wallets to prevent any further damage to the exchange and its users.
FTX is an exchange that was founded back in 2017 by Sam Bankman, the platform is one of the biggest exchange platforms and allows innovative products including industry-first derivatives, options, volatility products, and leveraged tokens. It has now been revealed that Liquid has taken a loan of $120M from FTX to safeguard the customers’ assets.
Statements from Liquid and FTX
“The financing will also improve Liquid’s balance sheet and, in turn, its key regulatory metrics, which further corroborates its ongoing licensing opportunities in the key jurisdictions of Japan and Singapore” Liquid Global Said.
“This opportunity with Liquid allows both organizations to strengthen and reinforce the belief that regulation in crypto and knowing your customer is an important part of the future of our industry” Bankman-Fried said.
Recent Hacks
Liquid Exchange was also hacked last November. The hacker gained access to the company’s records and then later exploited the network.
It is a second major heist to take place in a small time span. PolyNetwork a de-fi platform was also hacked and nearly $600M were taken by the hacker. Though in an unusual turn of events, the hacker returned the stolen funds to the company.
