Tue, November 19

Crypto Brokerage Firm FPG Halts Withdrawals Post $20M Exploit

Crypto Brokerage Firm FPG Halts Withdrawals Post $20M Exploit Editors News
  • The entire loss from the assault, according to FPG’s estimations, is between $15 and $20M.
  • FPG is a global brokerage that connects institutional investors with the crypto markets.

Floating Point Group, a crypto brokerage firm, reported on June 12 that it has suspended trading, withdrawals, and deposits after a hack on June 11. The entire loss from the assault, according to FPG’s estimations, is between $15 and $20 million.

Moreover, after identifying the security compromise, FPG reportedly locked all third-party accounts and migrated wallets, as stated in a message published on the company’s official Twitter account on June 15. Trading, deposits, and withdrawals were subsequently suspended out of “an abundance of caution.” Account separation, the company said, “limited the overall impact” of the assault.

FPG is a global brokerage that connects institutional investors with the cryptocurrency markets. FPG and its customers together manage $50 billion in assets, according to the company’s website.

Investigation Underway

It is doubtful that this new event would increase institutional interest in the cryptocurrency area given that the crypto industry is already suffering from decreasing prices and growing hostility from regulators.

Also, in December of 2022, FPG was able to get its SOC 2 Type 1 certification. After engaging in voluntary consultation with the cybersecurity organization Prescient Auditors. This clearance was awarded based on the results of an official audit of the company’s internal data controls. Which were performed to confirm the controls’ integrity.

FPG stated:

“We are working with the FBI, the Department of Homeland Security, our regulators, and Chainalysis to understand how this occurred and to recover assets.” 

FPG said that it could not provide any more information about the investigation since it was still in progress with the relevant law enforcement authorities.

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