Crypto exchange FTX allocated $6 million to compensate users affected by phishing

As the exchange's CEO, Sam Bankman-Fried, clarified, this "will not become a habit. We are talking about people hurt by fake exchanges and sites".

FTX founder and CEO Sam Bankman-Fried wrote on Twitter on October 23 that the exchange does typically not compensate its users "who have been hurt by fake versions of other companies." Still, in this case, it did agree to the compensation.

In a recent phishing attack, attackers obtained keys to the application programming interface (API) of user accounts, allowing them to conduct unauthorized transactions on their cryptocurrency accounts. Put, stealing money! 

The attack came to light on October 21 after 3Commas reported that some of its users engaged in unauthorized trading.

After an initial investigation, FTX and 3Commas suspended suspicious accounts to avoid further losses and disabled all compromised API keys.

Incidentally, due to the numerous hacks, Sam suggested the "Standard 5-5" in his blog. According to it, hackers, after hacking, have the right to keep either $5 million or 5% of the stolen amount and return the rest. And then "we would exempt the hackers from liability," Sam added.

What is most likely meant is that after this procedure, the attacker will be considered a white hat. That is, he will not be prosecuted and can spend his honestly stolen money with a clear conscience.

Well, don't steal! Make money on your own. Crypto gives a lot of ways to do it - for example, through our Moni Alpha Reports - check here.