Major cryptocurrency exchanges are under threat of hacker attacks due to a new fraudulent scheme

WuBlockchain security researchers have discovered a new scheme used by cryptocurrency hackers — now the largest crypto exchanges are under threat, including FTX, whose client has already lost about $ 1.6 million.

A new method of stealing coins is emerging: contra trade. On October 19th, a user suddenly found that his FTX account using the 3commas API was trading DMG more than 5,000 times, stealing nearly $ 1.6 million such as BTC, ETH, FTT, etc. from his account. pic.twitter.com/cpxoCSdLiZ

— Wu Blockchain (@WuBlockchain) October 21, 2022

An FTX exchange user noticed that while using his 3Commas API account, someone traded the DMG control token more than 5000 times. This allowed hackers to steal $ 1.6 million worth of BTC, ETH, FTT, and other digital assets from the user’s account. The most likely reason for the sudden disappearance of funds from the account is a hack in the 3commas API, which allowed hackers to gain control of the account and conduct suspicious trading activities.

The affected client has filed a police report about the theft of funds from his account, but FTX has not yet taken any action to prevent similar attacks. According to 3commas, there were no attacks on the service, so it continues to operate as usual. If 3commas is not involved in the problem, then FTX remains the only source of the hack, which makes it vulnerable and every customer a potential victim.

In order to quickly investigate cryptocurrency crimes and ensure security for users, the American division of the largest crypto exchange Binance has hired a former FBI agent Jay Kahn to become the head of the investigation department. The specialist will be responsible for cooperation with law enforcement agencies, regulators, and trading platforms. Kahn will detect and prevent illegal activities on the cryptocurrency platform. He will also create an «infrastructure for investigating» questionable cases.