Cryptocurrency brokerage firm Floating Point Group (FPG) has confirmed that it has stopped trading, withdrawals, and deposits on its platform after falling victim to 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, upon discovering the security breach, FPG blocked all third-party accounts and migrated wallets. He later stopped trading, deposits, and withdrawals out of an "out of an abundance of caution."
1/5 On Sunday we had a cyber security incident. Upon discovery, we have blocked all third-party accounts and migrated and secured all wallets until we better understand the scope and circumstances of this incident.
โ Floating Point Group (@fpgcrypto) June 14, 2023
In addition, the company noted that its account segregation "limited the overall impact" of the attack.
FPG is an international brokerage firm that provides institutional clients with access to the crypto markets. according to their websiteFPG and its clients manage $50 billion in assets.
The latest development is not likely to bolster institutional appetite for the cryptocurrency sector, which has already been affected by declining market conditions and increased hostility from regulators.
In December 2022, FPG voluntarily consulted cybersecurity firm Prescient Auditors and received its SOC 2 Type 1 certification. This certification is an official audit that verifies the overall security of a company's internal data controls.
โWe are working with the FBI, the Department of Homeland Security, our regulators, and Chainalysis to understand how this occurred and to recover assets,โ FPG wrote in a subsequent comment.
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FPG also noted that due to the ongoing nature of the investigation with the respective law enforcement agencies, it was unable to share any additional details publicly.
Cointelegraph reached out to FPG for more information about the attack, but has yet to receive a response.
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