FTX will award 'one-time' $6 million compensation to phishing victims

FTX founder Sam Bankman-Fried said the exchange won't "get into the habit of compensating" users who are "phished by fake versions of other companies."

The FTX cryptocurrency exchange will provide approximately $6 million in compensation to victims of a phishing scam that allowed hackers to perform unauthorized transactions on certain FTX user accounts.

FTX Founder and CEO Sam Bankman-Fried posted on October 23 in a Twitter thread that the exchange generally does not compensate its users "phished by fake versions of other companies of the 'space', but in this case it would compensate users.

Bankman-Fried said it was a "one-time thing" and that FTX "won't do it in the future".

“THIS IS NOT A PRECEDENT,” he wrote, clarifying that only FTX user accounts would be refunded.

14) But this time we will; about $6 million in total.

(To be clear, only for FTX accounts! Hope other exchanges compensate theirs.)

BUT STILL NOT A PRECEDENT, WE'RE NOT GOING FORWARD.

The recent phishing attack saw attackers obtain user account application programming interface (API) keys that allowed them to perform unauthorized transactions with their crypto exchange accounts.

The attack came to light on October 21 after 3Commas said it was alerted that some of its