News

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.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Website: coincu.com

Foxy

CoinCu News

Victor

Recent Posts

Gate.io Shatters Records in Total Trading Volume in Q3 2024, with Its User Base Surpassing 17 Million

In the third quarter of 2024, despite a challenging market environment, Gate.io maintained strong growth…

21 mins ago

MEXC Champions the Future of Crypto Content Creation at CCCC

MEXC is proud to partner with the inaugural Crypto Content Creator Campus CCCC event, taking…

21 mins ago

Dtec Announces Global Partnership with DİZAYNVIP to Elevate AI-Driven Mobility Design  

Dtec and DİZAYNVIP partner to merge AI technology with luxury vehicle design, revolutionizing smart mobility…

1 hour ago

Bitcoin Spot ETF Outflows Reach Second Highest in History

Bitcoin Spot ETF Outflows hit $541M on November 4, the second-highest single-day outflow in history.…

5 hours ago

PropiChain’s Token Presale Turns Heads as the First DeFi Platform to Merge NFTs with AI 

The hype around PropiChain’s token presale is due to its innovative integration of NFTs and…

8 hours ago

UK Pension Fund Cartwright Encourages 3% Allocation to Bitcoin Investment

UK pension fund Cartwright advised the country's first defined benefit pension fund to allocate 3%…

10 hours ago

This website uses cookies.