FTX Compensates Victims Of Phishing Attack

- FTX Chief Sam Bankman-Fried announced compensation to victims of the recent phishing attack.
- He warned users to be more careful.

The FTX has extended help and compensation to victims of the recent phishing attack. FTX Chief Sam Bankman-Fried went on to clarify that this will be a one time compensation and that the firm will not be making a habit of it. The chief has has urged users to be very cautious on their end, and this is the last time the exchange will offer compensation.

Over the past few years, crypto scams and phishing have been on the rise and many victims are falling for it. It occurs with a bad attachment to an email and nowadays it is getting more and more worse. Unfortunately, October has turned out to have the most crypto hacks in the whole of 2022. This month more than $718 million have been lost to crypto hacks and the total value hacked this October has surpassed the numbers of March 2022.

Scammers are impersonating the website and getting the user name or password to log in and then proceed to drain the users account. FTX chief said that the FTX security team is working round the clock to prevent any kind of phishing and there are security measures such as the 2-factor-authentication (2FA) to protect users. Sam Bankman-Fried stated that:

We’ve mostly stamped out sites that try to phish users by masquerading as FTX. But we can’t fix fake sites impersonating *other* services. A few users accidentally registered at fake other sites, including 3 Commas.

They provided their FTX api keys to use the sites’ trading tools. Others users were probably phished through other methods. But one way or another, these users were exploited by third party attackers.

FTX offered $6 Million compensation to the victims. If the scammers return within 24 hours to FTX accounts, they will exonerate the hackers of legal action. Chief Sam Bankman-Fried explained that users giving out their credentials on sites that are impersonating FTX could be dangerous. This way, those websites could have users’ FTX API keys. Currently, crypto firms are trying to fight crypto scams at individual level however this issue needs to be addressed at an industry level.

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