Crypto Exchange FTX to Provide $6 Million Phishing Compensation

Sunil Jagtiani, Bloomberg News

Sam Bankman-Fried, founder and chief executive officer of FTX Cryptocurrency Derivatives Exchange, during an interview on an episode of Bloomberg Wealth with David Rubenstein in New York, US, on Wednesday, Aug 17, 2022. Crypto exchange FTX US is expanding its no-fee stock trading service to all US users, including non-crypto investors, in a move to expand its customer base and increase assets under custody. , Bloomberg

(Bloomberg) -- Digital-asset exchange FTX will provide about $6 million compensation to its account holders impacted by a phishing incident via a third-party website.

Crypto billionaire Sam Bankman-Fried, FTX’s chief executive officer, said on Twitter on Monday that the decision was a one-off as the firm won’t be “making a habit” of compensating users caught up in phishing efforts targeting non-FTX websites.

If the perpetrators send back 95% of the $6 million taken from FTX accounts within 24 hours, “we’ll absolve them,” Bankman-Fried said.

Last week, Bankman-Fried proposed in a blog post what he called a “5-5 standard” where crypto hackers keep either 5% of the amount they’ve taken from a protocol or $5 million, whichever is smaller.

That was part of an effort to curb the security exploits plaguing the digital-asset industry.

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