Paxos recovers $20 million in PAXG stolen in FTX hack

A few days after FTX filed for bankruptcy, the crypto exchange fell victim to a massive hack. This resulted in a loss of more than 400 million dollars in various tokens. Among the stolen tokens is Paxos Gold (PAXG). The company behind this token has just succeeded in extracting part of the stolen funds from hackers, in PAXG.

PAXGs ripped off and automatically secured

Paxos is a New York-based company that specializes in providing various blockchain services. In recent years, it has generated a lot of interest from major investors, who have not hesitated to invest in its development. He is one of the collateral victims of the attack perpetrated on FTX, on the night of Friday 11 to Saturday 12 November. Since then, his teams have not given up and have started tracking down pirates. Six weeks later, the hunt paid off.

Paxos announced that it had recovered the equivalent of $20 million from PAXG. This is a total of 11,184 PAXG. This sum was subtracted from one of the wallets that stored the stolen tokens. Recall that PAXG is a gold-backed crypto, of which Paxos has custody. Once this step was reached, the company proceeded to secure the recovered tokens.

The PeckShield Explained

“Paxos moved the stolen tokens from the addresses (…) to a null address and burned them. After that, he hit the same amount in another wallet, thus completing the recovery process,” has reported the security company PeckShield on the on-chain database.

According to the crypto exchange’s new management team, last month’s attack on FTX was inevitable. Indeed, the crypto platform stored the private keys of its wallets in an unencrypted way, she explained. Exchange teams were also adopting security controls “very mediocre”.

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