{"id":14689,"date":"2022-10-24T07:01:17","date_gmt":"2022-10-24T07:01:17","guid":{"rendered":"https:\/\/nftandcrypto-news.com\/crypto\/ftx-to-give-a-one-time-6m-compensation-to-phishing-victims\/"},"modified":"2022-10-24T07:01:20","modified_gmt":"2022-10-24T07:01:20","slug":"ftx-to-give-a-one-time-6m-compensation-to-phishing-victims","status":"publish","type":"post","link":"https:\/\/nftandcrypto-news.com\/crypto\/ftx-to-give-a-one-time-6m-compensation-to-phishing-victims\/","title":{"rendered":"FTX to give a ‘one-time’ $6M compensation to phishing victims"},"content":{"rendered":"

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Cryptocurrency exchange FTX will provide around $6 million in compensation to victims of a phishing scam that allowed hackers to conduct unauthorized trades on certain FTX users\u2019 accounts.\u00a0<\/p>\n

FTX founder and CEO Sam Bankman-Fried posted in a Twitter thread<\/a> on Oct. 23 that the exchange generally doesn\u2019t award compensation to its users \u201cphished by fake versions of other companies in the space\u201d but in this case, it would compensate users.<\/p>\n

Bankman-Fried said that this was a \u201cone-time thing\u201d and FTX would \u201cnot do this going forward.\u201d <\/p>\n

\u201cTHIS IS NOT A PRECEDENT,\u201d he wrote, clarifying it was only the accounts of FTX users that would be reimbursed.<\/p>\n

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14) But this once, we’ll do it; roughly $6m total.<\/p>\n

(To be clear, only for FTX accounts! Hopefully other exchanges will comp theirs.)<\/p>\n

BUT AGAIN NOT A PRECEDENT, WE WILL NOT GOING FORWARD.<\/p>\n

\u2014 SBF (@SBF_FTX) October 23, 2022<\/a><\/p><\/blockquote>\n

The recent phishing attack saw attackers gaining user account application programming interface (API) keys which allowed them to conduct unauthorized trades with their crypto exchange accounts. <\/p>\n

The attack came to light on Oct. 21 after 3Commas said it was alerted that some of its users had unauthorized trading activity. <\/p>\n

After an initial investigation, FTX and 3Commas then suspended the suspicious accounts to avoid further losses and disabled all compromised API keys.<\/p>\n

Related: <\/em><\/strong>Mango Market exploiter brags after rug pulling Mango Inu ‘shitcoin’<\/em><\/strong><\/p>\n

On Oct.19 Bankman-Fried published a blog post detailing his thoughts on crypto regulation that included a proposal he dubbed the \u201c5-5 standard\u201d where hackers keep either $5 million or 5% of the amount they\u2019ve stolen, whatever is smaller.<\/p>\n

In his most recent tweet thread, he thought it time to try his newly thought-up standard, imploring the hacker to send back 95%, around $5.7 million, of the stolen funds within 24 hours, saying \u201cwe\u2019ll absolve them.\u201d<\/p>\n

October has been dubbed \u201chacktober\u201d by the crypto community as Chainalysis revealed on Oct. 13 that October 2022 has been the \u201cbiggest month\u201d ever for hacking activity, despite the report coming out not even halfway through the month.<\/p>\n

At the time of the report around $3 billion had been exploited through over 125 separate incidents since the start of the month.<\/p>\n<\/div>\n