Key takeaways:
- The defunct cryptocurrency exchange FTX has disclosed that certain claimants’ limited, non-sensitive client information was made public.
- The FTX Debtors have opened a line of communication with Kroll and are closely monitoring the situation as it develops.
In a cybersecurity incident involving its bankruptcy case claims agency, Kroll, the defunct cryptocurrency exchange FTX has disclosed that certain claimants’ limited, non-sensitive client information was made public.
According to FTX, the situation is being actively monitored to ensure that funds, systems, and account passwords are not impacted.
On August 25, the cryptocurrency exchange used the X platform (formerly Twitter) to alert its clients, lenders, and the general public of a cybersecurity incident involving its claims agent, Kroll. Non-sensitive customer information from particular claimants connected to the ongoing bankruptcy case was exposed due to the hack.
According to FTX, Kroll is currently educating those affected by the cybersecurity incident about the precautions they may take to ensure their security. The insolvent cryptocurrency exchange clarified that the systems and account passwords were safe. FTX declared:
“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.”
Additionally, the FTX 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.
A data breach occurred at Celsius Network, a cryptocurrency loan company that is in bankruptcy, exposing email records. This breach significantly impacted how the bankruptcy reorganization process was progressing.
FTX has enlisted Galaxy Digital, headed by Mike Novogratz, to help manage its selling, staking, and hedging activities in the interim. This collaboration intends to support FTX’s initiatives to reduce market volatility-related risks and maximize the benefits from its Bitcoin holdings.
