Cryptocurrency brokerage firm Floating Point Group (FPG) has taken the precautionary measure of suspending trading, withdrawals, and deposits on its platform after falling victim to a cyberattack on June 11. The attack has resulted in an estimated loss of approximately $15 million to $20 million, as confirmed by FPG.
FPG swiftly locked all third-party accounts and migrated wallets in response to the security breach. However, the company decided to suspend trading activities, deposits, and withdrawals as a precautionary measure. FPG emphasized that its account segregation practices helped mitigate the overall impact of the attack.
FPG is an internationally recognized brokerage firm that specializes in offering institutional clients access to cryptocurrency markets. Boasting a substantial asset management portfolio of $50 billion, FPG has established itself as a prominent player in the industry.
Unfortunately, this recent incident is unlikely to bolster institutional confidence in the crypto sector, which has already grappled with challenging market conditions and heightened regulatory scrutiny. The industry’s reputation has been adversely affected, and this cyberattack only compounds the concerns surrounding digital currencies.
Before the cyberattack, FPG had proactively engaged with cybersecurity firm Prescient Auditors in December 2022, seeking to ensure the safety of its internal data controls. This effort led to FPG receiving the SOC 2 Type 1 certification, which verifies the efficacy of a firm’s data protection measures.
In their official statement, FPG revealed that they are collaborating with prominent authorities such as the FBI, the Department of Homeland Security, regulators, and Chainalysis to investigate the incident and recover the lost assets comprehensively. FPG cannot disclose specific details as an ongoing investigation due to its cooperation with law enforcement agencies.
The security breach suffered by Floating Point Group serves as a stark reminder of the persistent threats faced by cryptocurrency platforms. The incident highlights the need for robust security measures and constant vigilance within the industry to safeguard users’ funds and uphold the integrity of digital assets. As the investigation continues, market participants will closely monitor the developments and the steps FPG took to prevent future breaches and restore trust in the crypto sector.