An institutional crypto broker joined the list of firms that lost users’ funds to cybercriminals. The firm announced it suffered a security breach on June 11 that caused a loss of $20 million in investor funds to hackers. Notably, after the incident, the brokerage firm Floating Point Group stopped trading, deposits, and withdrawals.
Floating Point Group Reacted Quickly to Reduce Losses
The broker announced the breach on Twitter and stated it estimated a loss between $15 million to $20 million. Compared to other attacks the industry has seen in 2023, the amount is small, signifying the firm took quick action.
Based on its Twitter post, FPG discovered the attack faster and immediately locked all third-party accounts and migrated and secured all wallets pending when it “understands the scope and circumstances” of the incident.
Also, in its post, FPG mentioned that segregating the accounts helped mitigate the impact of the security breach.
In further comments about the incident, the firm disclosed that it is working with the Department of Homeland Security, the FBI, its regulators, and security firm Chainalysis to uncover how the incident occurred.
FPG also noted that part of the plan is to recover the assets which it lost. Further, the brokerage firm said that updating the community with further investigation details is impossible due to the law enforcement agencies involved.
Brief On FPG And Operations
Floating Point Group is a renowned international broker that creates a part for institutional investors to access the crypto market.
The firm and its clients manage $50 billion worth of assets, including top-performing hedge funds, venture capitalists funds for web3 and crypto startups, etc. It also boosts as a reliable platform to access centralized and decentralized crypto assets and enables users to beat slippage.
Unfortunately, the recent attack won’t do much to encourage investors in the crypto industry already dwindling under the weight of regulators’ attacks. However, a silver lining from the incident for FPG is that it noticed the attack on time and acted fast to prevent massive loss.
Also, the firm consulted with Prescient Assurance Auditors on a security audit in December 2022, after which it received a SOC 2 Type 1 certification. It also engaged Certik to audit its FlowVault platform.
