Play stupid games, win stupid prices
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Exactly.
So if I understand the issue correctly, here's how it goes down:
The hacker finds an illiquid shitcoin (DMG in this instance) with a huge bid/ask spread. The hacker then simply causes the the victim's FTX account (using the victim's FTX API trading key) to first sell (low) at the bid price (with the hacker's FTX account being the buyer), and then to turn around and cause the victim's account to instantly buy back from the hacker at the (high) ask.
Rinse and repeat until victim's account is drained due to the repeated losses from those trades. The hacker's account, being on the other side of each of those trades, has then realized the gains.
So firstly, that shows that people are leaving large amounts of funds on their FTX exchange accounts.
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Ah, so FTX and Alameda also are investors in 3Commas:
Alameda Research, a principal trading firm with close ties to FTX, backed 3Commas in a $3 million funding round in late 2020. Last month, 3Commas raised $37 million in a Series B funding round led by Alameda Research, [...]
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