New Court Filing Shows FTX Kept Crypto Wallet Keys On AWS

A recent report shows that the bankrupt crypto exchange, FTX, stored private keys to its customers’ wallets on Amazon Web Services (AWS). This information came from the first interim report of the current FTX CEO published on April 9. The FTX crypto exchange collapsed within 10 days in November 2022.

Its crash caused massive losses for investors at the time. After it filed for bankruptcy, investigations revealed mismanagement of funds and other business malpractices as the causes of its failure. Claim the JACKPOT with 55 FREE SPINS.

Signup today to redeem your bonus. FTX Stored Crypto Wallet Private Keys On AWS A recently published court document has revealed the findings of the current CEO of FTX, John J. Ray III, about the issues with FTX’s management.

In the report, CEO Ray explained how the exchange poorly carried out its control processes and record keeping. The document showed the negative dealings of the crypto exchange, which became so prominent that it drew the attention of certain regulatory bodies. It further revealed that poor control and lack of record-keeping were more visible in finance accounting, management, governance, and information.

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Notably, these pieces of information are useful in protecting and identifying the total funds of the platform, but the FTX Group neglected them. Another notable area the court filing disclosed was the exchange stored private keys to its users’ crypto wallets on Amazon’s cloud computing platform AWS. The revelation has raised concerns about the security of FTX’s users’ funds, as storing private keys on a third-party platform like AWS increases the risk of hacks and breaches.

The crypto market is trending down on the chart l source: Tradingview. com Private keys are essential passwords allowing users to access their cryptocurrency holdings and transact. Any compromise of these keys could result in the loss of funds if it falls into the hands of bad actors.

FTX Is Fully Aware Of Its Action The report stated that FTX Group was fully aware of how a transparent digital asset exchange should function. This was why the executives made up lies when asked how far it had implemented cold storage. Related Reading: Will The Swiss National Bank Buy Bitcoin? New Interview Causes A Stir As such, the court has summoned the FTX executives for the deliberately wrong action and response they provided about the safety and storage of crypto assets.

This news comes when the cryptocurrency industry is already facing heightened regulatory scrutiny. It remains to be seen how this revelation will further impact FTX’s reputation and whether the exchange executives will take steps to defend its actions. Featured image from Pixabay and chart from Tradingview.

com Share Tweet Share Share Sign Up for Our Newsletter! For updates and exclusive offers enter your email. Sign Up I consent to my submitted data being collected and stored. Leave this field empty if you’re human: Eli Dambell Eli brings an eclectic point of view to market analysis.

He was previously a brokerage director and online trading educator. Currently, he acts as a commentator across various asset classes, including Crypto, Stocks and FX, whilst also a startup founder. Related Posts How Polygon Emerged As The 2nd Largest Gaming Blockchain In March 2 days ago Do Kwon Ordered To Cease Liquidating Millions In Crypto By Prosecutors 3 days ago Snoop Dogg Wears Custom Gold Ledger Wallet Chain At WrestleMania 39 3 days ago Not Your Keys, Not Your Coins: Why You Need A Bitcoin Hardware Wallet 3 days ago North Korean Hackers Have Stolen Over 1$ Billion In Crypto So Far: Report 3 days ago Majority Of Crypto Investors Evaded Taxes In 2022, Study Shows 4 days ago.