Yet another crypto firm is halting its services, this time due to a cyberattack.
Unprecedentedly, Floating Point Group (FPG), an institutional cryptocurrency brokerage, was subjected to a cyberattack on June 11th.
As a protective measure, the company has ceased all trading activities and blocked withdrawals and deposits on its platform. It is worth noting that the estimated financial damage from this digital attack swings between $15 million to $20 million.
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The information first reached the public via a tweet on June 15th from FPG's official Twitter handle.
In the tweet, the company confirmed that it had discovered the security violation, leading to the lockdown of all external accounts and a transfer of wallets.
It's important to mention that, as FPG pointed out, the company's account isolation strategy helped curtail the full ramifications of this cyberattack. Their approach helped damage control, reinforcing the importance of such protective mechanisms in today's unpredictable cyber environment.
When commenting on the recent cyberattack, FPG stated:
We are working with the FBI, the Department of Homeland Security, our regulators, and Chainalysis to understand how this occurred and to recover assets.
The company's efforts to investigate and rectify this situation underlines its commitment to safeguarding its clients' interests.
Due to the ongoing investigation's sensitive nature, FPG couldn't disclose any additional details to the public.
The recent incident adds to the challenges the crypto sector faces. There has been a decline in institutional interest, coupled with unfavorable market conditions and increasing regulatory aggression. This event, therefore, comes as another blow to the already pressured sector.
The incident raises questions about the security measures employed by crypto firms and their vulnerability to such attacks. It highlights the urgency for rigorous cybersecurity protocols in the ever-evolving digital financial landscape.
In other news, the losses of Atomic Wallet clients affected by the recent hack skyrocketed to over $100 million.
