In a remarkable twist of events, the collapse of crypto exchange FTX last November was met with a heroic act by an advisor that prevented what could have been one of the largest crypto heists in history. Kumanan Ramanathan, an advisor from consulting firm Alvarez & Marsall, demonstrated quick thinking and bravery, ultimately saving millions of dollars in cryptocurrency assets.
FTX’s Descent into Bankruptcy
FTX, once a thriving exchange valued at $32 billion, had recently declared bankruptcy due to financial troubles. As new management took over, an unidentified group of thieves targeted the exchange’s wallets, posing a significant threat to its remaining assets. This theft was visible to all on the Ethereum blockchain explorer Etherscan.
In the midst of the chaos, a Google Meet call was organized, gathering FTX’s remaining team members, bankruptcy lawyers, advisers, and consultants. However, a major obstacle arose – only a few top executives had knowledge of how and where the exchange’s digital assets were stored.
The Heroic Intervention
In an attempt to safeguard the remaining funds, participants in the call asked if anyone had a hardware wallet. It was then that Kumanan Ramanathan, already in possession of a Ledger Nano hardware wallet, volunteered for the critical task. He swiftly set up a new wallet to secure the assets, a decision that proved to be crucial for the exchange’s survival.
After successfully securing the assets on his own hardware wallet, FTX reached out to its crypto custodian BitGo. Together, they established a more professional structure with secure cold storage for the remaining assets. Meanwhile, FTX staff members immediately began transferring the funds, effectively halting any further theft.
By the end of the fateful night, Ramanathan found himself safeguarding between $400 and $500 million worth of crypto on his Ledger. The Wired report stresses that his actions were indispensable in preserving the remaining assets for the bankruptcy estate.
“Kumanan Ramanathan’s quick thinking and courage played an invaluable role in preventing a catastrophic loss for FTX. His actions saved millions in cryptocurrency assets,” stated the Wired report.
FTX did endure significant losses, amounting to between $415 million and $432 million in crypto during the hack. However, without Ramanathan’s intervention, the damage could have been far greater.
