Cryptocurrency exchange FTX will pay $6 million in compensation to victims of phishing scams.
According to the determination made by 3Commas on October 21, hackers made unauthorized transactions on the crypto exchange by obtaining the API keys of the users in the said phishing attack. FTX and 3Commas have joined forces, suspending suspicious accounts and deactivating the compromised API keys in an effort to prevent damage following the investigation. FTX announced that it will also pay compensation for its users who are victims of the incident.
FTX Will Give Victims $6M One-Time Compensation
Cryptocurrency exchange FTX has taken a step towards a phishing scam that allows scammers to trade the accounts of certain FTX users without authorization.
Sam Bankman-Fried, founder and CEO of FTX, announced that he will provide approximately $6 million in compensation to his victims. Bankman-Fried also shared that there will be no continuation of this, and that such a practice does not normally exist.
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
Stating that this is not a precedent, Sam Bankman-Fried also included in his Twitter post that the $ 6 million refund will be made only to the accounts of FTX users.
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