FPG Suspends Operations After Losing $20M to Cyber Attack

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Institutional cryptocurrency brokerage firm Floating Point Group (FPG) has confirmed the suspension of trading, deposits and withdrawals on its platform due to the unfortunate cyber security incident on Sunday, June 11th. 

FPG came under an attack that led to a total loss of between $15 million and $20 million in crypto assets. 

FBI, Chainalysis Joins Ongoing Investigation at FPG

As soon as the breach was discovered, the crypto prime brokerage company closed on third-party accounts as well as migrated wallets. This helped to mitigate the impact of the attack. 

The decision to cease trading, deposit and withdrawal was out of an “abundance of caution” as the platform noted. Next, FPG contacted third-party forensic experts and some law enforcement agencies including the Federal Bureau of Investigation (FBI), Department of Homeland Security, and their regulator.

Blockchain analytic platform Chainalysis has also been reached to investigate and trace how cyber theft was perpetrated. The firm is still optimistic about recovering the stolen assets and has promised to release updates as the investigation progresses. 

FPG Provides For Institutional Clients

The Floating Point Group which was formed at the Massachusetts Institute of Technology in 2018, is an international prime brokerage firm that offers its service to institutional clients, giving them access to the crypto market.

Based on data from its official website, FPG and its client covers approximately $50 billion in assets under management (AUM). The company is backed by crypto heavyweights like Coinbase Ventures, SkyBridge Capital’s Anthony Scaramucci and AngelList founder Naval Ravikant.

More Cyber Attacks on The Crypto Ecosystem

The attack on FPG comes amidst several other hacks in the crypto ecosystem. Only last week, Atomic Wallet users reported that their entire holdings had been wiped off.

Wu Blockchain suspects that it may be a supply chain attack where hackers tamper with the software’s source code before it is downloaded by the users. In the meantime, renowned on-chain investigator ZachBTX is investigating the breach.

Two weeks ago, hackers made away with $7.5 million worth of Ethereum (ETH) from Jimbos Protocol.

According to Perkshield, the attack was contributed by the protocol’s inability to regulate slippage for tokens under its control. Notably, the bad actor discovered a flaw in the liquidity-shifting mechanism and exploited it to create reverse swaps to profit from the protocol-owned liquidity.

 

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