3Commas Faces Crypto Bot Security Breach

The provider of crypto trading bots, 3Commas, is on “heightened alert” after user accounts were compromised and used to execute transactions.

In a blog post published on October 8, 3Commas co-founder and CEO Yuriy Sorokin stated that the company had received reports from users regarding unauthorized transactions on their accounts after they had reset their passwords.

A small number of customer accounts were compromised, and unauthorized transactions were made, according to an investigation. 3Commas did not disclose the number of consumers affected.

Sorokin wrote, “We will resume our investigation into this matter.” Please note, however, that our services are operating normally, and we will continue to maintain a heightened state of alertness.

According to 3Commas, the majority of accounts with unauthorized transactions had not enabled two-factor authentication (2FA). It was stated that the accessed data did not contain user API data or credentials.

As additional security measures, the company reported implementing a new method for resetting passwords and turning off API connections after users reset passwords.

It was suggested that users enable two-factor authentication and alter their passwords frequently.

In December 2022, the company disclosed an October incident in which leaked user API keys led to unauthorized transactions on victim accounts.

Sorokin and 3Commas initially denied that a security compromise had occurred and instead suggested that their clients had been phished. It eventually conceded, and Sorokin admitted that 3Commas had an API breach.

Users of 3Commas affected by the API breach demanded refunds and an apology for being misled.

Sorokin expressed remorse over the latest incident, stating, “We regret that this has occurred.” He added that 3Commas is enhancing its security to prevent or limit future incidents of a similar nature.