A crypto trader was taken by surprise after hackers reportedly siphoned more than a million dollars worth of digital assets from his FTX account by exploiting an API connected to the trading account.
According to reports, the FTX user discovered that his account using the 3Commas API, has traded the DMM: Governance (DMG) token more than 5,000 times, leading to the loss of about $1.6 million worth of assets, including Bitcoin, Ether, and FTX tokens.
3Commas is a crypto trading platform that allows users to build automated trading bots that operate on major exchanges.
The trader said he reached out to FTX and the exchange claimed that the API key of 3Commas was leaked and that similar situations were not isolated cases.
The victim then submitted a police case filing notice to FTX, but the company reportedly took no further action and gave no reply. The crypto exchange also did not freeze any funds involved in the case.
Commenting on the incident, 3Commas noted that its security systems were tight and no leaks had occurred from its end.
“This matter is being looked at as a top priority right now at 3Commas. We have the highest security with 2FA and OTP on login etc to ensure that user accounts are always secure. We are in touch with the user to ensure they get all the support needed,” the platform said.
The cause of the incident was still unknown at the time of writing, but users hope that both FTX and 3Commas will take the time to review their security systems to prevent such from happening again.
Meanwhile, the incident has been added to a list of hacks that have led to the loss of millions of dollars worth of cryptocurrencies in October alone. According to reports, hackers have stolen more than $700 million worth of assets from crypto users and platforms this month.
Some of the most notable attacks include the $600 million Binance Chain hack, the $100 million Mango Markets oracle exploit, and the $23 million Transit Swap theft.