On February 9th, Blockfolio, the digital currency portfolio management app, was the victim of a hack. Unlike most hacks and exploits that take place in the digital currency industry, the Blockfolio hacker did not steal money or user data from the company; instead, the attacker gained access to Blockfolio’s messaging system and sent racist and offensive messages via push notification once they were in the system.
Blockfolio is owned by FTX, the digital currency derivatives exchange run by CEO Sam Bankman-Fried. Shortly after the Blockfolio hack took place, both Bankman-Fried and Blockfolio took to Twitter to apologize and announce their next steps subsequent to the hack.
Beyond apologizing, the Blockfolio team assured users that no funds or trading features were affected due to the breach, Bankman-Fried followed up by saying that Blockfolio will be giving $10 to every Blockfolio user that has enabled the trading feature on their account, every user that was personally impacted by the push notification that the attacker sent out, as well as any users who sign up and enable trading on Blockfolio this week (with a cap at 1 million). In addition, Bankman-Fried announced that he and other Blockfolio team members would be donating to ACLU.
Blockfolio and FTX
Blockfolio is one of the most popular portfolio management tools used by digital currency investors. Many digital currency investors hold several different digital currencies across many different exchanges–Blockfolio allows these investors to track all of their positions from one location.
FTX bought Blockfolio in August 2020 for $150 million in cash, which paved the way for FTX to integrate digital currency and tokenized stock trading services into the app. FTX was one of the first digital currency service providers to offer 24/7 tokenized stock trading, a service that other digital currency service providers, including Bitcoin-built TDXP, have also added to their platforms.
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