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FTX consents to compensate users for phishing with $6 million

Dave - Cryptocurrency Enthusiast

The cryptocurrency exchange platform FTX has agreed to give its affected account holders $6 million in compensation after a phishing incident occurred via a third-party website.

The FTX CEO Sam Bankman-Fried issued the following official declaration on Twitter:

Bankman-Fried highlighted that this was a one-time decision and that it will not become "a habit" to compensate victims of phishing attacks on websites other than FTX.

In related news, the trade crypto bot provider 3Commas issued a security alert after discovering instances of unlicensed purchases of DMG coin pairings on the FTX exchange using certain API credentials. Recently, some crypto traders suffered huge losses as a result of hackers stealing millions of dollars in digital assets from their FTX accounts by misusing an API linked to the trading accounts.

In addition, numerous 3Commas-connected FTX users who received notification that their API is "invalid" or "requires upgrading" must generate new API keys. In response to this, 3Commas stated, "It is probable that your API details were hacked, and FTX has destroyed the API key."

According to preliminary investigations, fraudulent websites impersonating 3Commas were used to collect API keys when users linked their FTX accounts. Later, the illegal DMG trades were carried out with the use of the FTX API keys. To underline and clarify, there has been no compromise of either 3Commas account security databases or API credentials, according to the 3Commas staff. This is an issue that has affected several users who have never been 3Commas clients, therefore there is no way that it is a leak of API keys from 3Commas.

Following the incident, FTX and 3Commas identified suspect accounts based on user behavior and suspended the API keys to prevent further losses.

It is crucial to find a top crypto broker, who can also take extra safety steps to prevent your assets from being stolen. We suggest visiting BCBitcoin – an acknowledged crypto broker whom you can trust for safety of your transactions or crypto assets overall, with a hardworking team which is available 7 days per week.

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