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New Court Filing Shows FTX Kept Crypto Wallet Keys On AWS

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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.

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.

It also highlighted the necessity for a company that handles the funds of investors and customers to be apt in keeping data sources, identifiable records, and processes. 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

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Author: Eli Dambell

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