The officials at FTX, a major cryptocurrency exchange have made an announcement for the victims of the recent phishing scam.

$6 Million Allocated for FTX Users

According to the exchange, it is to issue compensation worth $6 million for the victims.

The exchange has confirmed that the funds would be allocated for the phishing scam victims. The amount to be distributed among the users would be worth $6 million.

By carrying out the phishing attack, the hackers were able to execute unauthorized trades using details of the accounts of existing FTX users.

The announcement made by Sam Bankman-Fried

The CEO and founder of the FTX exchange, Sam Bankman-Fried reportedly made a Twitter announcement on October 23, 2022.

According to Bankman-Fried, their exchange is not accustomed to issuing compensations to the users.

He made it clear that their company does not give out compensation for scams carried out in response to information phished out through third-party websites.

Despite the company’s strict policy, they have proceeded with the compensation and would allocate $6 million to the victims.

One-Time Thing

Bankman-Fried made it clear that this is the only instance where they have issued compensation for such victims. The investment community should consider it a one-time thing

Going forward, the exchange will not issue compensations for such incidents at all. He clarified that it is not a precedent and they would only compensate their own users.

He clearly stated that the compensation must not be taken as a precedent. This is a one-time thing and it will not be repeated under any circumstances.

Recent Attack on FTX

It was revealed that an attack had been carried out on the users of FTX where the hackers had gotten their hands on the API Keys of the FTX users.

They did this by setting up fake websites, which allowed them to carry out unauthorized trades on the victimized users.

The FTX and its partner, 3Commas acted fast and suspended all such API Keys before they could do much damage.

The hack attempt was addressed by the joint investigation teams from FTX and 3Commas. They claimed that they had stopped a huge amount of damage to be dealt with their platforms.

To deal with the situation quickly, the teams had to disable the API keys that had been compromised in the process. They further suspended the accounts that the investigation teams deemed suspicious.

Sam Bankman-Fried is among those who have been trying to help the entire cryptocurrency industry. He has even bought the assets and funds of other troubled cryptocurrency firms such as the Celsius Network.

Sam Bankman-Fried has paid $6 million in the form of compensation to try and keep the cryptocurrency sector together. However, he may not go with another compensation to pay people for their own mistakes.