The Unfolding FTX Cybersecurity Situation
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.
Communication and Actions Taken
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.
Kroll’s Response to the Incident
“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.
Emerging Threats
Customers are advised to exercise vigilance against potential fraudulent and scam emails posing as entities involved in bankruptcy proceedings.
Meanwhile, blockchain investigator ZachXBT reported that FTX clients are already receiving fraudulent emails, and the personal information of customers has been compromised.
Other Exchanges Facing Issues
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.
FTX’s Next Steps
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.
