FTX reports a cybersecurity breach involving its claims agent Kroll

• Kroll is acting as the claims agency for FTX in the ongoing bankruptcy case.
• Kroll is in contact with the affected individual.
• FTX is seeking to increase its crypto holding through selling, staking and hedging with the help of Galaxy Digital.

Defunct cryptocurrency exchange FTX has reported that its bankruptcy case claims agency, Kroll, had a cybersecurity breach that resulted in the exposure of limited, non-sensitive customer data of specific claimants. According to FTX, the situation is being actively monitored to ensure that funds, systems, and account passwords are not impacted.

The ailing cryptocurrency exchange, which is planning a relaunch, alerted its clients, lenders, and the general public of the data breach involving its claims agent Kroll on August 25 through the X platform (formerly Twitter).

Kroll in contact with affected individuals

According to FTX, Kroll is currently educating those affected by the cybersecurity incident about the precautions they may take to ensure their security. However, the insolvent cryptocurrency exchange made it clear that the systems and account passwords are safe.

Additionally, FTX’s debtors have opened a line of communication with Kroll and are closely monitoring the situation as it develops. Kroll has told the debtors that they handled the situation quickly and appropriately. Customers are urged to be vigilant about emails that could be fake or scams that pretend to be from companies going through bankruptcy.

Impact on the ongoing bankruptcy case

In the meantime, according to blockchain researcher ZachXBT, consumers of FTX are already receiving bogus emails and their personal data has been hacked.

A friend just received a phishing email to the email associated with their FTX account. pic.twitter.com/cWy3ykN4B3

— ZachXBT (@zachxbt) August 25, 2023

Celsius Network, a cryptocurrency lending platform in Chapter 11 bankruptcy proceedings also experienced a data breach that resulted in the exposure of customers’ email records and the breach has had a significant impact on the bankruptcy restructuring process.

While it is still too early to deduce the impact the Kroll data breach will have on the ongoing FTX bankruptcy proceedings, FTX has sought the services of Mike Novogratz’s Galaxy Digital to assist in selling, staking, and hedging its crypto assets so as to increase the crypto assets it intends to distribute to creditors.