Paxos Recovers $20M In Assets Stolen in FTX Attack


Blockchain company Paxos managed to retrieve $20 million worth of tokens stolen after the FTX attack.

After Sam Bankman-Fried filed for bankruptcy, the stock market was hacked for $400 million. Among the stolen assets was Paxos’ gold-backed token, PAXG.

Paxos Received Tokens

The company managed to freeze 11,184 PAXG2s worth $20 million from four wallets controlled by the hackers. After six weeks, the team reclaimed the assets.

Security firm PeckShield reported that, based on on-chain data, Paxos moved and burned tokens stolen from addresses labeled “FTX Accounts Drainer” by Etherscan to an empty address. The same amount of tokens was then minted in another wallet and the redemption was complete.

Paxos’ assets are only a small part of the theft. All of FTX’s $302 million ETH was sold for Bitcoin alone, and these assets could not be recovered.

John Ray, the new CEO of FTX, claimed that the private keys of FTX’s wallets are stored in an unencrypted form and are held with very weak security controls.


Please enter your comment!
Please enter your name here