FTX Will Compensate About $6 Million For Accounts With API Key Hacked

FTX founder, Sam Bankman-Fried, announced that it will compensate users in total about 6 million dollars for having their cryptocurrency hacked through stealing API keys. Sam also confirmed this will be the only time and there will be no more cases of users being scammed by fake versions of other companies in the space.

At the end of October 23, founder Sam Bankman-Fried officially spoke out about the case that users on FTX lost their crypto funds due to stolen API keys. He asserts that scammers are able to successfully steal cryptocurrencies largely because users voluntarily visit fraudulent links and unknowingly giving their account credentials to scammers.

As mentioned in the previous Coincu News article, starting on October 19, there was a crypto attack through a leaked API key, which resulted in the loss of $2.6 million to users and then there have been 3 cases reporting similar incidents. A total of 4 victims were attacked, including 3 victims related to using 3Commas keys.

An investigation by crypto exchange 3Commas and crypto exchange FTX has revealed that API keys associated with 3Commas were used to execute insecure DMG trading pairs on FTX allowing transaction. 3Commas said the API key may have been obtained from a third-party phishing attack or hack. At the same time, 3Commas has maintained close contact with the victims of this key leak and provided support.

After that, Sam Bankman-Friedleen will compensate approximately $6 million to account holders affected by the scam through third-party websites.

But he made it clear the decision is the only one, as FTX will not continue to compensate people who were scammed by non-exchange websites.

In addition, he also sent a warning to hackers if 95% of the $6 million stolen from FTX accounts is returned within 24 hours, the attackers will be exonerated.

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