Crypto broker FPG halts withdrawals after $15 million loss

Floating Point Group, a prime broker, has suspended trading, deposits, and withdrawals following a cybersecurity incident. Preliminary losses were estimated at $15-20 million.

2/5 Our account segregation limited the overall impact of the attack. We have ceased trading, deposits, and withdrawals, out of an abundance of caution. Finally, we have notified law enforcement and are actively cooperating with them on this matter.

— Floating Point Group (@fpgcrypto) June 14, 2023

After the problems were identified on June 11, the team blocked all accounts and moved funds to new wallets while the scale and circumstances of the breach remained unclear. The segregation of accounts limited the overall impact of the attack.

The company has notified law enforcement and is actively cooperating with the FBI, the Department of Homeland Security, regulators and Chainalysis.

The staff assured that they are working around the clock to secure the system and recover assets.

The company has earned a SOC 2 (Service Organization Control 2) — a recognised standard that assesses the implementation by the organisation of security, confidentiality and other controls.

According to The Block, around 100 clients of Floating Point Group manage assets worth about $50 billion. The startup holds a license as a VASP in the Cayman Islands.

Earlier, in September 2021, venture capital firm Tribe Capital invested $10 million in the startup during a Series A round.

Earlier, the South Korean platform Haru Invest paused withdrawals and deposits, citing issues with service partners.