FixedFloat, a decentralized crypto exchange, has confirmed an attack that compromised at least $26 million in Bitcoin and Ether.
The attacker’s wallet address has been identified, but it’s unclear how the attack was carried out. It’s likely that vulnerabilities within the FixedFloat platform were exploited, since FixedFloat has apparently shut down their platform for the time being.
A screenshot of FixedFloat’s website, showing that the exchange is inaccessible. Taken on 2/19/2024.
“We confirm that there was indeed a hack and theft of funds,” the FixedFloat team wrote on X (Twitter). “We are not yet ready to make public comments on this matter, as we are working to eliminate all possible vulnerabilities, improve security, and investigate. Our service will be available again soon. We will provide details on this case a little later.”
The team also announced that they’d frozen part of the stolen funds — around 112 ETH (roughly $328,000).
Will FixedFloat repay investors for stolen funds?
The company has asked victims to contact them at info@fixedfloat.com. However, full restitution for victims may be unlikely; cryptocurrency exchanges may not have the liquidity to pay millions to users.
Victims may be able to recover funds through legal proceedings, but again, there are limitations. Even in high-profile cases, courts have approved settlements that reimburse victims at the point of purchase — in other words, if the victim purchased Ether at $100 per coin, they would only be entitled to that amount (not the current value of ETH, which is around $2,936 USD).
Why did crypto traders use FixedFloat?
FixedFloat does not require user registration or KYC (Know Your Client) verification, which makes it a convenient option for traders who value anonymity. It is decentralized, which is true to the ethos of crypto — but decentralization can heighten vulnerabilities, depending on the design of the system.
At Datarecovery.com, we believe that the safest option for cryptocurrency is a software or hardware wallet. While perfect data security is impossible, users who maintain control of their private keys have more robust protection for their digital assets.
Learn more: Are Crypto Wallets Safer Than Crypto Exchanges?
How will the FixedFloat hack affect cryptocurrency markets?
Major security events can certainly impact crypto prices. The collapse of FTX, for example, sent investors scrambling and sent the price of Bitcoin to its lowest point since 2020.
However, the FixedFloat attack is relatively small, and the team seems to have identified and contained the issue quickly. At the time of writing, Bitcoin’s value has remained fairly steady since the attack (and it’s up slightly over the past five days).
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