Institutional Crypto Broker FPG Halts Withdrawals After $20M Cyberattack

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Cryptocurrency brokerage Floating Point Group (FPG) has confirmed that it halted trading, withdrawals and deposits on its platform after suffering a cyberattack on June 11. FPG estimates that the attack resulted in a total loss of between $15 million and $20 million.

According to a June 15 tweet from FPG’s official Twitter account, after discovering the security flaw, FPG locked all third-party accounts and migrated wallets. He then halted transactions, deposits and withdrawals out of caution.

Additionally, the company noted that separating its accounts limits the overall impact of the attack.

FPG is an international brokerage firm that provides institutional clients with access to the crypto markets. According to its website, FPG and its clients manage $50 billion in assets.

The latest development is unlikely to bolster institutional appetite for the crypto sector, which has already been hit by deteriorating market conditions and heightened hostility from regulators.

In December 2022, FPG voluntarily consulted with cybersecurity firm Prescient Auditors and received its SOC 2 Type 1 certification. This certification is a formal audit that verifies the overall security of a company’s internal data controls.

We are working with the FBI, Department of Homeland Security, our regulators and Chainalysis to understand how this happened and to recover the assets, FPG wrote in a later comment.

Related: North Korean Hackers Stole Over $100 Million From Atomic Wallet Users

FPG also noted that due to the ongoing nature of the investigation with respective law enforcement agencies, it could not share additional details publicly.

Cointelegraph has contacted FPG for more information regarding the attack but has yet to receive a response.

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