Several FTX users have lost millions of crypto funds after hackers carried out unauthorized trades using exploited API keys connected to the trading bot platform 3Commas.
According to crypto journalist Collin Wu, an FTX user found out that his account using 3Commas API keys traded DMG tokens over 5000 times. After this, he lost over $1.6 million worth of digital assets including Bitcoin, FTX tokens, and other cryptocurrencies.
This is not an isolated case as another user reportedly lost about $1.5 million in a similar manner.
3Commas Reply to the Incident
In response, 3Commas assured its community there was no breach of its account security and API encryption system or that of its exchange partners. It also said it did not leak any API keys. In fact, the affected users were not customers of the trading bot platform.
Upon further investigations, 3Commas discovered that the API theft was due to the user’s interaction with phony sites posing as 3Commas’ website. These phishing sites collected sensitive user data which was later used for the attack on FTX.
In conclusion, the platform shared safety tips with the users which includes using 2FA on service accounts, and running virus and malware scans on devices used to access crypto and financial services.
Phishing attacks are becoming commonplace in the industry, therefore users should be extra cautious and be sure of the authenticity of websites or links accessing them to protect their sensitive information.
As a preventive measure, FTX and 3Commas have disabled all APIs for accounts suspected of illegal activities. Affected users are requested to create new APIs.
October Continues as the Month for Crypto Thefts
October, which has previously been a bullish month for cryptocurrency, has not been so friendly for crypto investors and crypto firms this year. The month is on track to be the month with the most crypto funds stolen.
Earlier in the month, Solana-based Decentralized Finance (DeFi) platform Mango Market was exploited for $100 million. The community members have approved the hackers’ proposal to keep a portion of the stolen funds as a bounty reward. Also, the QANX token, the native token of the QANplatform lost 90% of its value after hackers drained $1 million from the quantum-resistant layer 1 blockchain platform.
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