In response to a security breach on Sunday evening, Floating Point Group (FPG) has temporarily suspended all customer withdrawals. The company informed its customers about the halt as a precautionary measure. FPG, an institutional crypto broker, is taking steps to address the security incident and ensure the safety of customer funds. Further details regarding the breach and the timeline for resuming withdrawals have not yet been disclosed.
Floating Point Group (FPG), a cryptocurrency brokerage firm, has temporarily suspended trading, withdrawals, and deposits on its platform following a cyberattack on June 11. FPG has estimated the attack to have caused a significant loss, ranging between $15 million and $20 million. The company is actively addressing the situation and working towards resolving the impact of the cyberattack.
Following the discovery of a security breach, cryptocurrency brokerage firm Floating Point Group (FPG) took immediate action by locking all third-party accounts and migrating wallets, as stated in a tweet from their official Twitter account on June 15. As a precautionary measure, FPG subsequently suspended trading, deposits, and withdrawals to ensure the utmost caution in addressing the security situation.
1/5 On Sunday, we experienced a cyber security incident. Upon discovery, we locked all third party accounts and migrated and secured all wallets until we better understand the scope and circumstances of this incident.
— Floating Point Group (@fpgcrypto) June 14, 2023
Furthermore, Floating Point Group (FPG) emphasized that the account segregation measures in place helped minimize the overall impact of the attack. FPG is a global brokerage firm that offers institutional clients access to cryptocurrency markets. With approximately $50 billion in assets managed by FPG and its clients, as stated on its website, the company plays a significant role in the crypto industry.
The recent development is unlikely to boost institutional interest in the crypto sector, which has already faced challenges due to market downturns and growing regulatory scrutiny. In December 2022, Floating Point Group (FPG) took proactive steps by engaging with cybersecurity firm Prescient Auditors and successfully obtaining SOC 2 Type 1 certification. This certification serves as an official audit, confirming the effectiveness of a firm’s internal data controls and overall security measures.
In a subsequent statement, Floating Point Group (FPG) mentioned its collaboration with the FBI, the Department of Homeland Security, regulators, and Chainalysis to investigate the incident and recover the affected assets. FPG is actively engaged in understanding the circumstances surrounding the security breach and is employing various resources to address the situation effectively.
Floating Point Group (FPG) acknowledged that, due to the ongoing investigation involving law enforcement agencies, it is unable to disclose further details publicly. The company is committed to cooperating with the authorities and respecting the investigative process, which limits the information that can be shared at this time. FPG’s priority lies in the thorough examination of the incident alongside the respective law enforcement agencies.
Important: This article is intended solely for informational purposes. It should not be considered or relied upon as legal, tax, investment, financial, or any other form of advice.
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