Crypto trading firm freezes accounts due to a Cyber Attack

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Since June 11th, 2023, Floating Point Group (FPG) has been hit by a devastating cyber attack, leading to the suspension of all trading, deposits, and withdrawals. This incident has sparked panic among FPG’s user base, who are eagerly awaiting information on when normal trading practices will resume. While the company has not provided a specific timeline, it has reassured users that its IT staff are working tirelessly to mitigate the risks associated with the attack.

Preliminary assessments suggest that FPG may have suffered losses between $15 million to $20 million in cryptocurrencies. However, the exact amount will be confirmed once the initial investigation is completed. In response to the attack, FPG has taken precautionary measures by locking all 3rd party accounts and wallets. The company has also announced its collaboration with the FBI and the Department of Homeland Security to conduct a thorough analysis and recover the lost assets.

Fortunately, advancements in software technology have provided tools that can trace transactions on the blockchain ledger, making it increasingly difficult for cyber criminals to remain anonymous. FPG remains optimistic that it can recover its stolen currency through regulatory channels and advanced chain analysis techniques.

According to FPG’s official website, the company has approximately $50 billion worth of assets in circulation within the crypto markets. This staggering amount emphasizes the significance of the incident and the urgent need to address the security vulnerabilities that led to the attack.

It is worth noting that cyber attacks with the potential to steal cryptocurrencies are often attributed to countries like North Korea, who employ such tactics to support their struggling economies and counteract sanctions. Additionally, the ongoing conflict between Russia and Ukraine since February 2022 has resulted in an imposing trading sanctions on Russia by the United States and the international community. This situation may have motivated a state-funded actor to launch the digital attack, potentially aiming to meet their currency requirements by utilizing stolen crypto assets.

The aftermath of this cyber attack serves as a stark reminder of the importance of robust cybersecurity measures within the cryptocurrency industry. FPG’s unfortunate experience should serve as a catalyst for heightened security practices across all platforms, ensuring the protection of user funds and maintaining trust within the crypto community.

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Naveen Goud is a writer at Cybersecurity Insiders covering topics such as Mergers & Acquisitions, Startups, Cyber Attacks, Cloud Security and Mobile Security

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