FTX will compensate phishing victims with a 'one-time' $6 million payment

According to FTX creator Sam Bankman-Fried, the exchange will not “make a habit of rewarding” users who have been “phished by phony versions of other enterprises.”

FTX crypto exchange said it will compensate victims of a phishing scam that allowed hackers to perform unauthorized trades on select FTX users’ accounts.

On Oct. 23, FTX founder and CEO Sam Bankman-Fried stated in a Twitter thread that the exchange typically does not provide compensation to users “phished by phony copies of other organizations in the space,” but that in this situation, it would.

Bankman-Fried stated that this was a “one-time incident” and that FTX would “never do this again.”

14) But this once, we'll do it; roughly $6m total.

(To be clear, only for FTX accounts! Hopefully other exchanges will comp theirs.)

BUT AGAIN NOT A PRECEDENT, WE WILL NOT GOING FORWARD.
— SBF (@SBF_FTX) October 23, 2022

Attackers gained user account application programming interface (API) keys in a recent phishing assault, allowing them to perform illicit trades with their crypto exchange accounts.

The hack was discovered on October 21 after 3Commas was notified that some of its users were engaging in illicit trading activities.

Following an initial examination, FTX and 3Commas suspended the suspect accounts to prevent further losses and disabled any compromised API keys.

TagsCrypto FTX

Ujunwa Juliet Ihiasota

I am a dedicated crypto and blockchain content writer who is vision-oriented, diligent, smart, and self-motivated. I have over a decade of self-writing experience and five years of experience as a professional writer. I hope to inspire other women into this ever-evolving field.