FTX (FTT), to Provide One-Time Compensation for Victims of Phishing Attacks
Crypto exchange FTX (FTT) announced on Monday that it’s going to give a one-time $6 million compensation to the victims of a recent phishing attack that gave hackers access to conduct unauthorized trade on some users’ accounts.
In a tweet, Sam Bankman-Fried, FTX boss, stated that although FTX is not responsible for the attack it will still reimburse affected users. However, the crypto billionaire stressed that the compensation is a one time affair and will not become a pattern in the future.
“Not only was this not FTX getting phished, it wasn’t even an FTX site. We cannot compensate users who are phished by fake companies in this space. It isn’t FTX and we have basically no control over it,” he said. “We will not making a habit of compensating for uses getting phished by fake versions of other companies!”
Hackers obtained application programming interface keys (API) keys during a recent phishing attempt. This allowed them to make unauthorized trading transactions on behalf of users who trade on FTX and other exchanges. This was first detected by 3Commas automated crypto trading robot, which later suspended the affected accounts along with FTX and disabled all compromised API key.
October has been the worst month in terms of stolen funds for crypto users. Chainalysis data shows that hackers stole $718 million in October’s first half.
- While the phishing attack occurred across many centralized exchanges, such as Binance’s, FTX will only reimburse its customers.
- It is not clear if the affected users will receive compensation in full or in part.
Why You Should Care
Phishing is one of the most common scam techniques in the world. In crypto, it’s used to persuade people into believing that fake companies are doing airdrops or that they’ve won something. Scammers will do any thing to get victims to click on the links and give out their personal information.
While FTX’s move has been met with applause from the general crypto community, Sam Bankman-Fried has made it clear that the compensation is a one-time response.
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