In an intriguing story last November, a swift and courageous move by an adviser played a crucial role during the falling apart of the crypto exchange FTX. This move potentially impeded what might have become an alarming crypto robbery. It was reported that Kumanan Ramanathan, an adviser to FTX from Alvarez & Marsall, successfully safeguarded numerous cryptocurrency assets with quick thinking and determination, thereby saving millions of dollars. FTX, once valued at $32 billion, was already struggling with financial difficulties while struggling to battle unidentifiable thieves targeting the exchange’s wallets.
This cyber burglary was unfolding in the open with every action verifiable on the Ethereum blockchain explorer Etherscan. With little time to waste, FTX assembled its leftover team members, consultants, bankruptcy attorneys, and advisers. However, only a few individuals from the top echelons of FTX possessed crucial details relating to the whereabouts and mechanism of storing the digital assets of the exchange. Amid this confusion and chaos, Ramanathan, who had a Ledger Nano hardware wallet handy, stood up for the exchange. Utilizing his hardware wallet, he established a new wallet to secure the remaining assets, thereby forming an interim shield against further losses.
Consequently, FTX felt the need to bring onboard a professional, secure cold storage system for the remaining assets. Their call landed at the doorsteps of the crypto custodian BitGo. As BitGo geared up for the task, FTX moved the remaining funds, thus successfully stopping further theft. In the process, Ramanathan ended up securing between $400 and $500 million worth of crypto on his Ledger. This timely action by the adviser came about as indispensable in preserving the remaining assets for the bankruptcy estate.
FTX, however, couldn’t escape the hack entirely and had to bear losses amounting to anywhere between $415 million and $432 million. This case is a significant reminder of the critical role that adept management of digital assets can play and how ordinary individuals can sometimes rise to the occasion to prevent catastrophes.
Source: Cryptonews
