FTX will provide a “one-time” $6 million settlement to phishing victims


Sam Bankman-Fried, the creator of FTX, said that the exchange would not “make a practice of rewarding” consumers who are “phished by fake copies of other enterprises.”

FTX will offer around $6 million in compensation to victims of a phishing scam that enabled hackers to perform illegal transactions on the accounts of select FTX customers.

Sam Bankman-Fried, founder and CEO of FTX, said on Twitter on October 23 that the exchange typically does not reimburse consumers who have been “phished by false versions of other firms in the area,” but in this instance, it will refund users.

Bankman-Fried said that this was a “one-time occurrence” and that FTX will “never do this again.” “THIS IS NOT A PRECEDENT,” he said, clarifying that only FTX subscribers’ accounts will be paid.

The latest phishing assault resulted in the acquisition of user account application programming interface (API) keys, which enabled the attackers to engage in illicit crypto exchange account trading.

The hack was discovered on October 21 when 3Commas was notified that some of its users had engaged in illicit trading activities.

After an initial assessment, FTX and 3Commas stopped the suspect accounts and deactivated any hacked API keys to prevent additional losses.

On Oct.19, Bankman-Fried released a blog post outlining his opinions on crypto legislation, which included a proposal he nicknamed the “5-5 standard,” in which hackers retain either $5 million or 5% of the amount they’ve stolen, whichever is less.

In his most recent Twitter thread, he felt it was time to test out his newly conceived standard, pleading with the hacker to return 95%, or almost $5.7 million, of the stolen cash within 24 hours or “we’ll forgive them.”

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