The cryptocurrency brokerage company Floating Point Group has confirmed that it has stopped operations, withdrawals and deposits on its platform after being the victim of a cyberattack on June 11. FPG estimates that the attack caused a total loss of between $15 million and $20 million.
According to a tweet posted on June 15 on the official FPG Twitter account, Upon discovering the security breach, FPG blocked all third-party accounts and migrated wallets. It later halted trading, deposits and withdrawals out of “an abundance of caution.”
1/5 On Sunday, we experienced a cyber security incident. Upon discovery, we locked all third party accounts and migrated and secured all wallets until we better understand the scope and circumstances of this incident.
— Floating Point Group (@fpgcrypto) June 14, 2023
1/5 On Sunday we suffered a cybersecurity incident. Upon discovery, we are blocking all third-party accounts and migrating and securing all wallets until we better understand the scope and circumstances of this incident.
Besides, the company noted that the segregation of its accounts “limited the overall impact” of the attack.
FPG is an international brokerage company that offers its institutional clients access to the cryptocurrency markets. According to your websiteFPG and their clients manage assets worth USD 50 billion.
The latest events are unlikely to bolster institutional appetite for the cryptocurrency sector, which has already been affected by waning market conditions and increasing hostility from regulators.
In December 2022, FPG consulted volunteered to cybersecurity firm Prescient Auditors and received their SOC 2 Type 1 certification. This certification is an official audit that verifies the overall security of a company’s internal data controls.
“We are working with the FBI, the Department of Homeland Security, our regulators and Chainalysis to understand how this occurred and to recover the assets,” FPG wrote. in a later comment.
FPG also noted that, Due to the ongoing nature of the investigation with the respective law enforcement agencies, he was unable to share any additional details publicly.
Cointelegraph has reached out to FPG for more information on the attack, but has not received a response by press time.
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