New crypto scam hits FTX account using 3comma’s API

by Arthur · October 21, 2022

According to reporter Colin Wu, there is a new scam doing the rounds in the crypto space called “Contra Trading”. Wu said that on October 19, an FTX user with 3comma’s API found that his account traded DMG more than 5,000 times. The incident led to the theft of Bitcoin (BTC), Ethereum (ETH), FTT, etc., worth nearly $1.6 million.

A new method of stealing coins is emerging: counter trading. On October 19th, a user suddenly found out that his FTX account using 3comma’s API traded DMG more than 5000 times, stealing almost $1.6 million as BTC, ETH, FTT, etc. from his account. pic.twitter.com/cpxoCSdLiZ

— Wu Blockchain (@WuBlockchain) 21 October 2022

According to users, the feedback to FTX from crypto exchange was that the API key of 3commas was leaked. In addition, the crypto exchange said that similar situations were not isolated incidents. However, 3commas has said there was no leak.

The victim filed a police report, but FTX did nothing to prevent more users from being attacked via the trading API. Nor did they make statements that would lead to the freezing of funds.

Users told WuBlockchain that FTX’s feedback was that the API-KEY of 3commas was leaked and that similar situations were not isolated cases. After the user submitted the notice of filing the police case, FTX did not respond or froze. 3commas said no leaks have occurred.

— Wu Blockchain (@WuBlockchain) 21 October 2022

The most likely cause of your account’s funds disappearing is a 3commas API security flaw. The flaw may have given hackers access to the account and allowed them to engage in questionable trading activity.

Who is responsible for the stolen crypto?

Currently, it is not known where the hack originated. FTX claims that the 3commas API key was leaked, while 3commas says there was no leak on their side. The situation will need a thorough investigation to clear it up.

If the fault lies with 3komma, the problem can be quickly resolved by stopping the platform’s interaction with FTX accounts.

But if the hack occurred on FTX’s side, the situation could become much more serious. This will cause almost every user on the crypto exchange to become a potential victim. Furthermore, having said that, a security breach at one of the largest crypto exchanges in the world would not have gone unnoticed. FTX has a strong security team dedicated to hacks and exploits and such an attempt would have been detected by them earlier.