October 24, 2022

FTX traders lost millions due to account hacking

At least four cryptotraders lost millions of dollars on the FTX exchange. Attackers gained access to their exchange accounts through APIs.

The first to sound the alarm was Chinese cryptoblogger Colin Wu. One user noticed that trading activity with DMG tokens in his account increased 5,000-fold. Then bitcoins, FTX tokens, ether, and other cryptocurrencies worth nearly $1.6 million disappeared from the account.

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 - Wu Blockchain
The reporter added that this was not an isolated theft and there were more victims.

The exchange said the reason for the hack was a leak of API keys for the 3Commas trading platform. But, as it's fashionable to say now, it's not all so clear-cut.

Jack Evans

About the author

I became a crypto asset owner in 2014, when the industry was in its infancy. Before that, I was working in the classic US and European stock markets. Since then, I have gained extensive experience in both cryptocurrency investing and day trading. I am happy to share with readers my experience with crypto exchanges, DeFi and NFT instruments. 

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