Paxos Recovers Stolen $20M Worth of Gold Tokens

Paxos, a blockchain and trust company, has successfully recovered $20 million worth of gold tokens stolen in the FTX hack.

The gold tokens were kept in the wallets of an unidentified attacker who attacked FTX in November.

Soon after Sam Bankman-Fried sought Chapter 11 bankruptcy protection last month, their failed exchange was taken advantage of to the tune of $400 million. The Paxos Gold (PAXG) tokens, which are actual gold held by Paxos back, were among the stolen goods.

The $20 million in Paxos Gold (PAXG) from four wallets under the control of hackers was swiftly frozen by Paxos. Six weeks later, the team has now wholly recovered the assets.

According to security company PeckShield's analysis of on-chain data, Paxos burned the stolen tokens yesterday after moving them from addresses marked by Etherscan as "FTX Accounts Drainer" to a null address. The reclamation procedure was then completed by minting the identical amount into a another wallet.

The Paxos recovery, however, only accounts for a minor percentage of the heist. The FTX reserves' ether holdings were $302 million at one point in the FTX drainer wallet, but almost all of that money was lost when it was exchanged for bitcoin and could not be recouped.