Digital currency trading protocol FTX will reimburse about $6 million to its customers who fell victim to a phishing scam that facilitated hackers’ move to perform unapproved exchanges on an FTX customers account.
Sam Bankman-Fried, FTX owner noted in a Sunday Tweet that “THIS IS NOT A PRECEDENT, buttressing that the reimbursement would be a one-time action to only FTX accounts, and would not be repeated as a habit in future.
Scammers had enabled an entry into a user’s account application programming interface (API) key and were able to pull through with certain unapproved exchange activities.
The invasion was detected on Friday after 3Commas mentioned that it received notifications of some unapproved trading actions being conducted through users’ accounts.
Following some examinations, both FTX and 3Commas halted operations in that account and mutilated the tampered API keys to prevent more losses.
Bankman-Fried disclosed in a series of tweets, his thought to try out his earlier reported crypto regulatory view, appealing to the scammers to refund about 95% of stolen funds within the next 24 hours. “We’ll absolve them,” he said.
October 2022 records as the “biggest month” for scam activities, as reported by Chainalysis.
Over 13 billion dollars are estimated to have been lost from 125 incidents since the month began.