FTX user loses $1.6M in crypto through 3Commas API

An API linked to the trading account was allegedly used by hackers to steal over a million dollars worth of digital assets from a crypto trader’s wallet. According to reports, an FTX user reported that his account had exchanged the DMM: Governance (DMG) token over 5,000 times via the 3Commas API, resulting in the loss of assets valued at roughly $1.6 million, in the form of Bitcoin, Ether, and FTX tokens.

A new method of stealing coins is emerging: contra trade. On October 19th, a user suddenly found that his FTX account using the 3commas API was trading DMG more than 5,000 times, stealing nearly $1.6 million such as BTC, ETH, FTT, etc. from his account. pic.twitter.com/cpxoCSdLiZ

— Wu Blockchain (@WuBlockchain) October 21, 2022

FTX user faces significant loss

The trader said that when he contacted FTX, the exchange asserted that the API key for 3Commas had been compromised and that similar incidents were not rare occurrences.

The victim then sent FTX a police case filing notice, however, it appears that neither the company nor the victim received any further action from it. Additionally, none of the case-related money was frozen by the cryptocurrency exchange.

Notably, 3Commas is a crypto trading platform that enables users to create automatic trading bots that work on well-known exchanges. In response to the issue, 3Commas stated that no leaks had come from its end and that its security systems were strong.

“This matter is being looked at as a top priority right now at 3Commas. We have the highest security with 2FA and OTP on login etc to ensure that user accounts are always secure. We are in touch with the user to ensure they get all the support needed,” the platform said.

In the meantime, the FTX user’s loss adds to the list of attacks that have led in the theft of cryptocurrencies valued at millions of dollars in just October this year. According to reports, hackers have taken assets valued at more than $700 million this month from cryptocurrency users and platforms. The $23 million Transit Swap theft, the $100 million Mango Markets oracle exploit, and the $600 million BNB compromise are a few of the most notable incidents.