Crypto Exchange FTX to provide $6 million phishing compensation to users

Digital-asset exchange FTX will provide about $6 million compensation to its account holders impacted by a phishing incident via a third-party website.
 

Crypto billionaire Sam Bankman-Fried, FTX’s chief executive officer, said on Twitter on Monday that the decision was a one-off as the firm won’t be “making a habit” of compensating users caught up in phishing efforts targeting non-FTX websites.

13) But in this particular case, we will compensate the affected users.

THIS IS A ONE-TIME THING AND WE WILL NOT DO THIS GOING FORWARD.

THIS IS NOT A PRECEDENT.

We will not making a habit of compensating for uses getting phished by fake versions of other companies!

— SBF (@SBF_FTX) October 23, 2022

If the perpetrators send back 95% of the $6 million taken from FTX accounts within 24 hours, “we’ll absolve them,” Bankman-Fried said.

Last week, Bankman-Fried proposed in a blog post what he called a “5-5 standard” where crypto hackers keep either 5% of the amount they’ve taken from a protocol or $5 million, whichever is smaller.

That was part of an effort to curb the security exploits plaguing the digital-asset industry.