Cryptocurrency platform Floating Point Group (FPG) has stopped deposits and withdrawals after a “cybersecurity incident”. An FPG spokesperson explained that the cryptocurrencies lost were between $15 million and $20 million.
Cryptocurrency company stopped operations after cyber attack!
Floating Point Group (FPG), a crypto prime brokerage. It currently manages over $50 billion in client assets. cryptocoin.com As you follow, FPG had a “cybersecurity incident” on Sunday. After that, the cryptocurrency company stopped trading, deposits and withdrawals.
A source with direct knowledge of the matter said that after the incident was noticed, the FPG began working with third-party forensic experts and law enforcement. An FPG spokesperson also confirmed the incident. In line with this, the spokesperson said that the firm has locked all third-party accounts and moved and secured all wallets until we better understand the scope and circumstances of the incident. The company also confirmed the incident on Twitter.
1/5 On Sunday, we experienced a cyber security incident. Upon discovery, we locked all third party accounts and migrated and secured all wallets until we better understand the scope and circumstances of this incident.
— Floating Point Group (@fpgcrypto) June 14, 2023
FPG continues to investigate cyber attack incident and casualties
Meanwhile, the spokesperson noted that FPG’s account segregation limited the overall impact of the attack. He also noted that at this point the disappearances still remain to be investigated. He added that while the losses are being analyzed, the figure as of today is between $15 million and $20 million in cryptocurrency losses. In this context, the spokesperson underlined the following:
We’re working with the FBI, Department of Homeland Security, our regulators, and Chainalysis to understand how this happened and recover assets. We are unable to share details at this time as this is an ongoing investigation with law enforcement. We will share updates as they become available.
The cybersecurity incident came six months after FPG announced that a service organization had earned SOC 2 (Service Organization Control 2) certification, a recognized standard that verifies that a service organization has implemented security, privacy, and other controls, and provides reliability in handling sensitive data and systems.
FPG has had the backing of high-profile investors in the past
The founders founded the cryptocurrency company at the Massachusetts Institute of Technology in 2018. FPG is a crypto master brokerage platform and agent trading desk in general. In this context, the company provides access to liquidity across markets for asset managers. In December, FPG said that Blockchain foundation clients represented 5% of the total treasury management market.
FPG is backed by high-profile investors such as Coinbase Ventures, SkyBridge Capital’s Anthony Scaramucci, and AngelList founder Naval Ravikant. In this way, it has collected a total of 12 million dollars in funds to date.
Last August, FPG announced that it was registered as a virtual asset service provider (VASP) in the Cayman Islands. The record meant that the firm could “hold customer assets securely. It would also ensure that his client’s assets were protected from his own creditors should the company go bankrupt. FPG said it had about 100 customers at the time.
