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There has been a massive increase in crypto phishing attacks in recent years. Essentially, it involves sending email attachments to potential victims. However, crypto phishing hackers have also improved their game.

Now, these hackers mirror a website whose users they intend to attack. Then, they swipe the login details of users who clicked on the fake website.

With time, they can steal all the crypto assets in such accounts. SBF said that the FTX security group has been working nonstop to prevent a similar attack in the future. However, SBF also advised FTX customers to be wary about too-good-to-be-true offers.

He added that there had been safety efforts like the introduction of 2-factor-authentication (2FA) to protect user accounts. The FTX CEO remarked:

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“We have stamped out sites posing as FTX or FTX-related services. However, we can’t fix sites faking other services unrelated to ours. For example, a few users mistakenly registered on 3comma and other fake sites. Unfortunately, they released their FTX API keys to use “these sites trading tools.”

Other users lost their crypto assets through other phishing methods. However, the most important thing is that third-party hackers exploited the ignorance of these users.

Paying $6 Million As Compensation

The FTX boss expressed concern that users who released their SPI keys to these fake sites can also hurt the FTX platform. The attackers can use those API keys to manipulate other users’ API keys.

SBF said that, as of now, each crypto firm is attempting to battle out phishing scam issues at individual levels. However, he added that the solution should be provided at an industry level.

Even though FTX chose to reimburse the affected users this time, it is a one-off event. SBF said: We can’t compensate users because they got phished by fake sites! This is a one-time thing, and we won’t do this again in the future. This is not something our users should expect again.

Nevertheless, FTX announced a $6 million reward as compensation for victims of the recent 3comma phishing attack. Furthermore, the FTX CEO added that the company would not take any legal action against the attackers, provided they can return at least 95% of the stolen funds.

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George Ward

By George Ward

George Ward is a crypto journalist and market analyst at Herald Sheets, known for his engaging articles on the latest digital currency trends. With a background in finance and journalism, he presents complex topics accessibly. George holds a degree in Business and Finance from the University of Cambridge.