On June 11, Floating Point Group (FPG) notified its customers that it was suspending withdrawals due to a security breach the company was facing.

Following a cyberattack on June 11, cryptocurrency brokerage firm Floating Point Group (FPG) has officially announced the suspension of trading, withdrawals, and deposits on its platform. FPG has estimated that the attack led to a significant loss ranging between $15 million and $20 million.

In a tweet posted on June 15 by FPG's verified Twitter account, it was stated that in response to the security breach, FPG took immediate action by securing all third-party accounts and transferring wallets. Subsequently, as a precautionary measure, the company decided to suspend trading, deposits, and withdrawals.

Furthermore, FPG emphasized that its account segregation measures played a crucial role in minimizing the overall impact of the cyberattack.

FPG is a globally operating brokerage firm that specializes in serving institutional clients, granting them access to cryptocurrency markets. As stated on its website, FPG and its clientele collectively oversee a substantial $50 billion in assets.

The recent incident is unlikely to instill confidence among institutional investors in the crypto sector, which has already been facing challenges due to declining market conditions and growing regulatory scrutiny.

In December 2022, FPG took the proactive step of engaging Prescient Auditors, a cybersecurity firm, for consultation. As a result, FPG successfully obtained the SOC 2 Type 1 certification, a comprehensive audit verifying the effectiveness of a company's internal data controls in ensuring overall security.

FPG also mentioned that, due to the active investigation involving law enforcement agencies, it was unable to disclose any additional information to the public.

Earlier, there was news that hackers breached the DeFi project Deribit.