On February 9, the Blockflow Signal channel was briefly hacked, resulting in some users receiving racist messages on the company’s app.
Users stated that the perpetrators even threaten to lose money if the deposits are not removed from the cryptocurrency wallet platform. While it was reported that the security group Blockfolio removed the offending messages within 30 minutes, the incident left many wondering how such an attack could have happened.
In a tweet on Tuesday, SBF offered an update on the incident, stating that a rival exchange was to blame.
“We’ve spent the last four hours researching every corner and tracking potential customers,” SBF tweeted, adding:
“This offensive content was created and posted through the exchange of views of competitors who maliciously accessed other Blockfolio News / Signal capabilities.”
The FTX boss denounced the culprit, but did not name the competitor. Access to the signal flow reportedly did not impact or jeopardize money.
According to SBF, Blockfolio has completed its investigation into the case and the company has fixed the vulnerability that triggered the situation. The FTX chief has pledged to improve the security infrastructure around the non-commercial Blockfole protocols to prevent similar incidents in the future.
Bankman-Fried was hailed by many in the cryptocurrency community for his quick and transparent response to the incident, and in compensation, he added $ 10 to affected users’ trading accounts. The SBF also said they made a donation to organizations fighting racial and social injustice in the aftermath of the incident.
FTX acquired Blockfolio for $ 150 million in August 2020. This is not the first security issue the company faces. In May 2020, a white hat hacker named Paul Litvak reported a security vulnerability that exposed the platform’s source code in outdated cybercriminal app releases.
Then Litvak reported that the vulnerabilities were more than two years old. Luckily for Blockfolio, no attacker knew that the bug existed so the company could fix the problem and double its commitment to user privacy.