Crypto brokerage firm Floating Point Group announced facing a cyber security incident in a series of tweets. FPG said it has temporarily suspended trading, deposits, and withdrawals as a precautionary measure.

The firm meanwhile noted that it has promptly secured all wallets and locked third-party accounts as it probes the attack.

FPG confirmed that the cyber incident occurred on Sunday. The Floating Point Group security breach led to the firm promptly locking all third-party accounts soon after. While it probes the scope of the breach, Floating Point Group noted, “Our account segregation limited the overall impact of the attack. We have ceased trading, deposits, and withdrawals, out of an abundance of caution.”

To recover the missing assets, the Floating Point Group announced that it has started working with law enforcement organizations like the FBI and the Department of Homeland Security.

Although the exact extent of the loss is yet to be determined, FPG’s preliminary estimates suggest that between $15 million and $20 million worth of cryptocurrencies have been stolen. Floating Point Group is also reportedly working with renowned cybersecurity firm Chainalysis to ascertain the cause of the incident and enhance its system security.

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After an audit by Prescient Assurance in December last year, Floating Point Group received SOC 2 Type 1 accreditation. The certification validates FPG’s commitment to robust security protocols and data protection for its prime brokerage platform. FPG had also engaged with CertiK to conduct a thorough cybersecurity audit of its FlowVault platform.

As the inquiry continued, the platform refrained from sharing specific details regarding the cyberattack at press time. It said, “We will provide updates as they become available. Right now, we are working around the clock to investigate this incident, ensure the security of our systems, and recover assets.”

Cyber breaches remain prominent in the crypto industry. 

PeckShield recently reported a profanity attack on the Keep3r Network (KP3R). Another attempt was made against the decentralized finance protocol Sturdy, according to BlockSec. The blockchain cybersecurity company reported that Sturdy lost approximately 442 ETH due to a faulty price oracle.

Atomic Wallet investors reportedly lost around $100 million in a breach. 

The recent breach of the Twitter account of famous crypto influencer Ben Armstrong also led to the promotion of a fake token. Previously, there was reported a loss of their non-fungible tokens (NFTs), stablecoins, and other crypto tokens after Orbiter Finance’s Discord server was hacked.

The market has since fallen back into negative territory on the daily charts. As per CoinGecko data, Bitcoin has lost 4% on the daily charts, while Ethereum is down almost 7%. The cumulative market cap of the crypto market is close to $1 trillion after slipping nearly 4%.

The post Floating Point Group Halts Crypto Trading After Losing Up to $20M in Security Breach appeared first on BeInCrypto.

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