Despite the bear market, cryptocurrency day traders still see opportunities to strike it rich. Many seek out an edge by employing algorithmic trading bots that automatically execute trades at a moment’s notice. There are risks in letting code make snap decisions, however. A group of investors organizing on Telegram say that they have been the victims of hackers that compromised the Application Programming Interface (API) of the automated trading platform 3Commas to the tune of $22 million. In a series of tweets, pseudonymous Internet Sleuth @ZachXBT claims dozens of users have reported that thieves siphoned funds away through unauthorized trades on their centralized exchange accounts because of the 3Commas API. “3Commas blames it on ‘phishing’ but I now have verified a group of 44 victims who’ve had $14.8m in total stolen,” ZachXBT tweeted. In a Google Docs document shared in the Telegram group and viewed by Decrypt, members say the exchanges where the unauthorized transactions occurred include Binance, Coinbase Pro, and KuCoin. “Users have made complaints across different exchanges,” ZachXBT wrote. “It’s clear this is not phishing and API keys were stolen.”
Full story : 3Commas API Dispute Highlights Risks of Algorithmic Trading.
