FTX crypto

Credits: Reuters

The now-defunct cryptocurrency exchange FTX has disclosed a security breach concerning its bankruptcy case claims handler, Kroll, in which certain claimants’ limited, non-sensitive customer data was revealed.

FTX is actively managing the situation and ensuring that customer account passwords, systems, and funds remain unaffected.

On August 25, the struggling cryptocurrency exchange employed the X platform to notify its customers, creditors, and the general public about a cybersecurity incident involving its claims handler, Kroll.

This breach led to the exposure of non-sensitive customer data from specific claimants associated with the ongoing bankruptcy case.

FTX has affirmed that Kroll is currently informing the affected individuals of the steps they can take to protect themselves in the aftermath of this cybersecurity event.

The cryptocurrency exchange in bankruptcy has also clarified that its account passwords and systems are still 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.”

Read More: Judge denies bail for FTX founder Sam Bankman-Fried

Additionally, the FTX Debtors have initiated contact with Kroll and are closely monitoring the evolving situation. Kroll has assured the debtors that they have promptly taken control of and resolved the incident.

Customers are strongly advised to exercise caution in response to potential fraudulent and scam emails that may impersonate entities involved in the bankruptcy proceedings.

Meanwhile, blockchain investigator ZachXBT has reported that fraudulent emails are already being received by FTX clients, and customer personal information has been compromised.

In a separate incident, Celsius Network, a crypto lending platform currently facing bankruptcy, suffered a data breach resulting in the exposure of their email records. This breach has had a significant impact on the ongoing bankruptcy reorganization process.

In the midst of these challenges, FTX has enlisted the assistance of Galaxy Digital, led by Mike Novogratz, to help manage its sales, staking, and hedging activities.

This partnership aims to enhance FTX’s ability to mitigate risks associated with market volatility and optimize returns from its Bitcoin holdings.