Crypto Brokerage Firm FPG Halts Trading After Cyberattack

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On June 11, $15-20 million were stolen from the cryptocurrency brokerage Floating Point Group in a hack. Trading, deposits, and withdrawals were all suspended out of "an abundance of caution" after all third-party accounts were frozen and wallets were relocated. Investigation is underway.

After a cyberattack on June 11, cryptocurrency brokerage Floating Point Group said on June 12 that trading, withdrawals, and deposits had been temporarily halted. FPG predicts a total loss of $15-20 million as a result of the attack.

Isolated Accounts Comes Handy

According to a tweet sent by the firm on its official account on June 15, after discovering the security breach, FPG froze all third-party accounts and moved wallets. Subsequently, trading, deposits, and withdrawals were halted due to “an abundance of caution.” The corporation said that the attack was limited in its overall impact due to the fact that individual accounts were isolated from one another.

FPG is a worldwide brokerage that acts as a conduit between the cryptocurrency markets and institutional investors. According to the FPG website, the firm and its clients together manage $50 billion in assets.

Further Dent on Institutional Interest

Institutional interest in the cryptocurrency space is unlikely to expand. As a result of this new development since the crypto business is already struggling with falling prices and increased antagonism from authorities.

Working With Authorities

After voluntarily consulting with the cybersecurity firm Prescient. FPG received its SOC 2 Type 1 accreditation in the winter of 2022. This approval was granted after an official audit of the organization’s internal data controls verified their legitimacy.

The firm 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.”

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Since the inquiry is ongoing with the proper authorities, FPG said that it was unable to disclose any more details.

Haris Rauf