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Defunct crypto exchange FTX has announced a cybersecurity breach involving its bankruptcy case claims agent, Kroll, in which limited, non-sensitive customer data of specific claimants was exposed. FTX said it is actively overseeing the situation, assuring that account passwords, systems and funds remain unaffected.
The struggling crypto exchange utilized the X platform on Aug. 25 to notify its customers, creditors and the public about a cybersecurity breach involving its claims agent Kroll. The breach has resulted in the exposure of non-sensitive customer data from specific claimants linked to the ongoing bankruptcy case.
FTX has stated that Kroll is presently informing the individuals impacted by the cybersecurity event about the steps they can take for their protection. The crypto exchange in bankruptcy clarified that its account passwords and systems remain secure.
“The incident occurred at Kroll, and Kroll is notifying affected individuals directly with measures that customers can take to protect themselves. FTX account passwords were not maintained by Kroll, and FTX’s own systems were not affected.”
Furthermore, the FTX Debtors have initiated communication with Kroll and are diligently overseeing the unfolding situation. Kroll has informed the debtors that they have swiftly controlled and addressed the incident. Customers are advised to exercise vigilance against potential fraudulent and scam emails posing as entities involved in bankruptcy proceedings.
A friend just received a phishing email to the email associated with their FTX account. pic.twitter.com/cWy3ykN4B3
— ZachXBT (@zachxbt) August 25, 2023
Meanwhile, blockchain investigator ZachXBT reported that FTX clients are already receiving fraudulent emails, and the personal information of customers has been compromised.
Related: Sam Bankman-Fried can meet with lawyers outside of jail with 48 hours’ notice, says judge
Celsius Network, a crypto lending platform facing bankruptcy, experienced a data breach resulting in the exposure of their email records. This breach has had a notable impact on the ongoing bankruptcy reorganization process.
In the meantime, FTX has enlisted Galaxy Digital, led by Mike Novogratz, to assist in managing its selling, staking and hedging endeavors. This partnership aims to bolster FTX’s efforts to mitigate risks linked to market volatility and optimize the returns from its Bitcoin holdings.
Magazine: Deposit risk: What do crypto exchanges really do with your money?
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