After discovering specific FTX API keys being used to conduct illicit trades for DMG cryptocurrency trading pairs on the FTX exchange, automated crypto trading bot provider 3Commas issued a security warning alert.
In response to reports from users of illicit trades on the DMG trading pairs on FTX, 3Commas and FTX undertook a joint investigation. The pair said that hackers created fresh 3Commas accounts to carry out the DMG trades, and they added that “the API keys were stolen from outside the 3Commas platform” rather than from 3Commas itself.
Following an investigation, it was discovered that individuals were linking their FTX accounts to fraudulent websites pretending to be 3Commas in order to obtain API credentials. The illicit DMG exchanges were then carried out using the FTX API keys.
According to 3Commas, hackers may have utilized malware and third-party browser extensions to acquire users’ API keys, adding:
“To reiterate and clarify, there has been no breach of either 3Commas account security databases or API keys. This is an issue that has affected multiple users who have never been customers of 3Commas so there is no possibility that it is a leak of API keys originating from 3Commas.”
Based on user behavior, FTX and 3Commas both discovered suspect accounts and suspended the API keys to stop additional losses.
Users of FTX who have linked their accounts with 3Commas and who observe that their API is “invalid” or “needs upgrading” are required to generate new API keys. In these circumstances, 3Commas advised that:
“It is possible your API details were compromised and the API key has been deleted by FTX.”
To ensure that running trades are not interrupted, users can create a new API key on FTX and link it to their 3Commas account. In order to aid the victims and learn more about the hackers, 3Commas is now collaborating with them.
Recently, FTX and Visa teamed up to introduce debit cards in 40 nations around the world. The collaboration enables FTX users to make purchases using debit cards that have “zero fees” and no recurring costs.
The FTX token surged 7% in response to the news, briefly reaching a trading price of $25.62, as market reacted to the news.
