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The now-defunct cryptocurrency exchange FTX has reported a cybersecurity incident involving its bankruptcy case claims agent, Kroll, which led to the exposure of limited, non-sensitive customer information from certain claimants. FTX has stated that it is closely monitoring the situation and confirmed that account passwords, systems, and funds are secure.
The troubled crypto exchange used the X platform on August 25 to inform its customers, creditors, and the general public about the cybersecurity breach concerning its claims agent Kroll. This incident has resulted in the exposure of non-sensitive customer data related to specific claimants involved in the ongoing bankruptcy proceedings.
FTX has indicated that Kroll is currently reaching out to those affected by the cybersecurity breach to inform them of the protective measures they can take. The exchange under bankruptcy has reiterated that its account passwords and systems remain intact.
“The incident took place at Kroll, and Kroll is directly notifying the impacted individuals with guidance on how customers can safeguard themselves. FTX account passwords were not held by Kroll, and FTX’s own systems were not compromised.”
Additionally, the FTX Debtors have begun discussions with Kroll and are actively monitoring the developing situation. Kroll has communicated to the debtors that they have promptly managed and resolved the incident. Customers are urged to remain cautious of potential fraudulent emails and scams masquerading as parties involved in the bankruptcy process.
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A friend just received a phishing email to the email associated with their FTX account. pic.twitter.com/cWy3ykN4B3
— ZachXBT (@zachxbt) August 25, 2023
At the same time, blockchain investigator ZachXBT has reported that FTX customers are already receiving fraudulent emails, indicating that personal information of clients has been compromised.
Related: Sam Bankman-Fried can meet with lawyers outside of jail with 48 hours’ notice, says judge
Celsius Network, a cryptocurrency lending platform undergoing bankruptcy, also faced a data breach that resulted in the exposure of their email records. This incident has significantly affected the ongoing bankruptcy reorganization efforts.
In the interim, FTX has engaged Galaxy Digital, led by Mike Novogratz, to assist in managing its selling, staking, and hedging activities. This collaboration aims to enhance FTX’s strategies to reduce risks associated with market fluctuations and maximize returns from its Bitcoin assets.
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