FTX Offers $6 Million to Phishing Victims, But There’s a Problem

Cryptocurrency platform FTX will pay around $6 million to compensate victims of the latest phishing attack.

CEO Sam Bankman-Fried revealed that this was a one-time decision and emphasized that the company would not compensate these clients in the future.

This time only

Last week, hackers targeted several FTX users and drained $1.26 million worth of cryptocurrency. A victim discovered that his account using the 3Comma API had traded the DMM: Governance (DMG) token more than 5,000 times, indicating a phishing attack that resulted in a significant loss of funds.

The victim contacted FTX about the incident and filed a police report. Initially, the victim claimed, the exchange did not respond and no further action was taken.

In a recent series of tweets, FTX founder and CEO – Sam Bankman-Fried (SBF) – broke his silence and said the trading venue will provide nearly $6 million in compensation to phishing victims.

But he made it clear that any similar issues in the future would not be resolved in this way, stressing that “this is a one-time thing.”

SBF said the refund will only be for FTX users. It also raised hopes that other exchanges would follow suit and compensate their clients who have fallen victim to such attacks.

Some recent phishing tricks

This type of fraud, in which the perpetrator sends a fraudulent message to entice individuals into revealing sensitive information, has become increasingly common lately.

In July, hackers targeted Uniswap V3 liquidity providers and took over $8 million in ETH from thousands of addresses.

Several reports from last week suggested that the notorious North Korean hacker group – the Lazarus Group – sent phishing emails to employees of Japanese crypto companies to trick them into installing malware.

A few days ago, a group of hackers hacked the official Gate.io Twitter account to promote a phishing scam. The criminals announced a reward of $500 for the first 1,000 people who linked their wallets to a fraudulent site.

Gate.io received many warnings from the community and was able to deal with the incident.

FTX Post to Save $6 Million for Phishing Victims, But There’s a Catch That First Appeared on CryptoPotato.

Leave a Reply

Your email address will not be published. Required fields are marked *