Today didn’t go well for a crypto trader as hackers reportedly looted more than a million dollars worth of digital assets from his FTX account by exploiting an API connected to the trading account.
According to reports, the FTX user shockingly noticed that his account using the 3Commas API, has traded the DMM: Governance (DMG) token more than 5,000 times, leading to the loss of about $1.6 million worth of assets, including Bitcoin, Ether, and FTX tokens.
Shockingly, FTX and 3Commas Denied the leak.
3Commas is a crypto trading platform that offers automated trading bots service operating on major exchanges.
According to the trader, he reached out to FTX after the hack and the exchange claimed that the API key of 3Commas was leaked and that similar situations were not isolated cases.
The hack victim then submitted a police case filing notice to FTX, but the company reportedly took no further action and gave no reply.
The crypto exchange also did not freeze any funds involved in the case.
Commenting on the issue, 3Commas affirmed that its security systems were tight and no leaks had occurred from its end.
“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.
Till now, the real cause of the incident is still unknown at the time of writing, but users hope that both FTX and 3Commas will take the time to review their security systems to prevent such from happening in future.
We are still in Hacktober, and security has been an issue lately.