3Commas Issues Security Alert After FTX Removes API Keys After Hack

Automated crypto trading bot provider 3Commas has issued a security alert after identifying certain FTX API keys being used to perform unauthorized trading of DMG cryptocurrency trading pairs on the FTX exchange.

3Commas and FTX conducted a joint investigation into user reports of fraudulent trading on FTX’s DMG trading pairs. The duo identified that the hacker used his new 3Commas account to execute his DMG transactions, stating that “the API key was not obtained from his 3Commas, but from outside the 3Commas platform. It is,” he added.

Subsequent investigation revealed that a malicious website masquerading as 3Commas was being used to phish for API keys when users linked their FTX accounts. An FTX API key was then used to execute a fraudulent DMG transaction.

3Commas further suspects that the hackers used third-party browser extensions and malware to steal API keys from users, adding:

“To clarify once again, there was no compromise of the 3Commas account security database or API keys. cannot be.”

Both FTX and 3Commas have identified suspicious accounts based on user activity and suspended API keys to avoid further losses.

FTX users who have connected their account to 3Commas and receive a message that the API is ‘invalid’ or ‘renewal required’ will need to create a new API key. In such cases, 3Commas suggested:

“Your API details may have been compromised and your API keys have been removed by FTX.”

Users have the option to create a new API key on FTX and link it to their 3Commas account to ensure active trading is uninterrupted.

3Commas is now working with victims to provide assistance and gather more information about hackers.

Related: Voyager customers can recover 72% of frozen crypto under FTX trading

FTX recently partnered with Visa to roll out debit cards in 40 countries around the world. The partnership allows FTX users to pay for goods and services using a debit card with “zero fees” and no annual fees.

The market reacted to the development as the FTX token surged 7% and briefly hit a trading price of $25.62.