FTX has announced that it will provide around $6 million in compensation to victims of a phishing scam that allowed hackers to conduct unauthorized trades on certain FTX users’ accounts.
FTX stated that the exchange generally doesn’t award compensation to its users phished by fake versions of other companies in the space but in this case, it would compensate users.
The recent phishing attack saw attackers gaining user account application programming interface keys which allowed them to conduct unauthorized trades with their crypto exchange accounts. The attack came to light on Oct. 21 after 3Commas said it was alerted that some of its users had unauthorized trading activity.
After an initial investigation, FTX and 3Commas then suspended the suspicious accounts to avoid further losses and disabled all compromised API keys.
October has been dubbed hacktober by the crypto community as Chainalysis revealed on Oct. 13 that October 2022 has been the biggest month ever for hacking activity, despite the report coming out not even halfway through the month.
