Floating Point Group (FPG), a cryptocurrency brokerage firm serving institutional clients, recently experienced a cyberattack that forced them to suspend trading, deposits, and withdrawals on their platform. The attack resulted in a substantial loss of funds, estimated to be between $15 million and $20 million. FPG promptly took action to secure their clients’ accounts by restricting third-party access and moving their digital wallets to a more secure location.
They are now collaborating with law enforcement agencies and cybersecurity experts to investigate the incident and recover the stolen funds. According to its website, FPG, and its clients manage $50 billion in assets. This unfortunate event adds to the existing caution surrounding the crypto sector, which has been grappling with market fluctuations and increased regulatory scrutiny.
A survey conducted by cybersecurity firm Trend Micro revealed alarming findings regarding the perceived cybersecurity landscape, back in May. The survey, which involved IT security professionals from over 3,500 institutions worldwide, highlighted that 78% of respondents anticipated a successful cyberattack within the next 12 months, despite a slight improvement in the global cyber risk level.
Indicating a 7% decrease from the previous year, still showcased the prevailing apprehension surrounding cybersecurity threats. The survey shed light on specific concerns related to data breaches. Seventy percent of respondents expected breaches in customer data, while 69% predicted breaches in critical data.
These figures underscore the urgent need for businesses to prioritize cybersecurity measures and safeguard sensitive information. Although organizations have been increasingly adopting security protocols, the persistence of cyber risks emphasizes the necessity for continued vigilance and investment in robust security systems.
Prior to the cyberattack, FPG had obtained a SOC 2 Type 1 certification, which certifies the effectiveness of a company’s internal data controls. This certification demonstrated that FPG had taken steps to protect its systems and data from potential threats.
However, the attack on FPG serves as a reminder that even well-protected systems can be vulnerable to determined cybercriminals. This incident reinforces the importance of regularly reviewing and fortifying security measures to adapt to evolving cyber threats.
The cyberattack on FPG, in combination with existing market conditions and regulatory scrutiny, may further dampen institutional investors’ confidence in the cryptocurrency sector. Institutional involvement in the crypto market has already been cautious due to factors such as price volatility and regulatory uncertainties. Incidents like these only reinforce the need for enhanced security measures and industry-wide efforts to mitigate cyber risks, providing reassurance to potential investors.
FPG has taken the cyberattack seriously and is actively collaborating with law enforcement agencies, including the FBI and the Department of Homeland Security, to investigate the breach. They have also engaged the expertise of Chainalysis, a company specializing in tracking cryptocurrency transactions, to aid in the recovery of the stolen funds. Due to the ongoing nature of the investigation, FPG is unable to disclose further details publicly.
The cyberattack on FPG highlights the persistent cybersecurity threats faced by organizations in the digital age. While global cyber risk levels have slightly improved, the survey conducted by Trend Micro reveals that businesses continue to anticipate cyberattacks and data breaches.
The FPG issue serves as a reminder that fraudsters can still uncover weaknesses even in the presence of certifications and aggressive security measures. The crypto industry is currently dealing with more scrutiny while navigating a difficult environment. Businesses must put a high priority on cybersecurity initiatives and collaborate to increase the overall security of the digital environment.