As a result of a phishing attack on the algorithmic-trading platform for cryptocurrencies 3Commas and the compromise of a number of API keys, FTX users’ losses exceeded $6 million. This was reported by the exchange’s CEO, Sam Bankman-Fried.
15) Anyway — maybe a time to try out the 5-5 standard on the 3Commas/phishing scammer!
If they send back ~$5.7m (~95%) of the scam within 24h to 0xD15ff86129c3Da57756b33827DfFF6D252602284, we’ll absolve them.
— SBF (@SBF_FTX) October 23, 2022
He contacted the perpetrators with an offer to return within 24 hours 95% of the stolen funds, or about $5.7 million, to avoid prosecution. This would be a test of the standard he proposed, Bankman-Fried added.
He noted that in most cases phishing attacks are conducted either via emails containing malicious attachments or by creating fake sites for the platforms. By visiting these sites, the user voluntarily, albeit unknowingly, provides their credentials.
According to Bankman-Fried, FTX has a team that fights counterfeit sites of the exchange.
«We have a large number of controls in place to try to prevent potential leakage of user accounts through fake FTX sites. And, overall, they are effective: it is a lot of work, but it is mostly successful», said the head of the exchange.
5) We have a huge number of controls in place to attempt to prevent fake FTX sites from being able to drain users’ accounts.
And generally they work: it was a lot of work but it’s mostly successful.
— SBF (@SBF_FTX) October 23, 2022
In the case of the latest attack, users provided data to several fake sites, including 3Commas, but not to FTX. The team is not able to combat counterfeit sites of other platforms, Bankman-Fried stressed.
«This is largely unacceptable, and something the industry should fight. Right now each company has to separately deal with phishing, and it sucks. FTX has, but others need to as well», said Bankman-Fried.
11) Mostly this sucks, and is something we should be fighting as an industry.
Right now each company has to separately deal with phishing and it sucks.
FTX has, but others need to as well.
— SBF (@SBF_FTX) October 23, 2022
Even though this was not an FTX phishing attempt and not even its fake site, the exchange will compensate users for their losses. But this is limited to this particular case, the CEO of FTX clarified.
«This is a one-off thing, and we will not do this going forward. This is not a precedent! We will not cultivate a habit of compensating for users who fall prey to counterfeit versions of other companies», warned Bankman-Fried.
13) But in this particular case, we will compensate the affected users.
THIS IS A ONE-TIME THING AND WE WILL NOT DO THIS GOING FORWARD.
THIS IS NOT A PRECEDENT.
We will not making a habit of compensating for uses getting phished by fake versions of other companies!
— SBF (@SBF_FTX) October 23, 2022
Earlier in October, the head of FTX announced the launch of a new version of the exchange. It is expected to take place on November 21.
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