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FTX Claimant Data Breach Triggers ‘High Alert’ Warning

2 mins
Updated by Kyle Baird
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In Brief

  • Bankrupt cryptocurrency exchange FTX's claimants' data has been exposed due to a cybersecurity breach at Kroll.
  • Kroll, handling FTX's bankruptcy proceedings, assures that it did not possess FTX passwords, hence no need for change.
  • Bankrupt crypto firms, including Voyager and Celsius, have recently experienced similar customer data breaches.
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The data of individuals making claims against bankrupt cryptocurrency exchange FTX has been exposed in a cybersecurity breach. 

Kroll, the claims administrator handling FTX’s bankruptcy proceedings, fell victim to a cyber attack. The company clarified that it did not possess customer passwords.

Claimants Advised to Be Vigilant

On August 25, FTX revealed in a series of posts on X (formerly Twitter) that the cyberattack exposed a fraction of its users’ data.

“FTX learned that Kroll, the claims agent in the bankruptcy, experienced a cybersecurity incident that compromised non-sensitive customer data of certain claimants in the pending bankruptcy case.”

The exact nature of the compromised data remains uncertain. However, FTX suggests that users do not need to change their private information just yet.

“FTX account passwords were not maintained by Kroll, and FTX’s own systems were not affected,” it states. 

To learn more about the downfall of FTX, read BeInCrypto’s guide: FTX Collapse Explained: How Sam Bankman-Fried’s Empire Fell

Kroll is reportedly notifying affected users directly, along with guiding them through ways to safeguard their data.

FTX and Kroll claim to have “promptly contained” the incident. Users were once again cautioned to remain vigilant against individuals exploiting the FTX bankruptcy case.

“Please remain on high alert for attempted fraud and scam emails impersonating parties in the bankruptcy.”

The data breach comes after recent news that FTX is exploring the possibility of resuming business operations in some capacity.

On August 1, reports indicated that FTX had entered the early stages of reactivating its exchange services for customers outside the US. Despite earlier rumors circulating in June about similar developments, the announcement prompted a 10% increase in FTX’s native token, FTT, for a brief period.

bankrupt crypto exchange FTX native token. FTT Token Price Chart 1 Month. Source: BeInCrypto
FTT Price Chart 1 Month. Source: BeInCrypto

Latest Customer Data Breaches

Bankrupt crypto firms have experienced multiple customer data breaches in recent times.

Recently, bankrupt crypto lender Voyager reportedly experienced a data breach. Many believe it happened when customers were provided platform access in June to recover their funds. Even though customers managed to pull out over $491 million from the platform, there is a possibility that their personal information was at risk of exposure during this period.

In October 2022, another bankrupt crypto lender, Celsius, made public the names and transaction history of a significant amount of its customers through a court submission. 

The document, spanning 14,500 pages, disclosed details like customer names, crypto wallet IDs, types and sizes of transactions.

Numerous crypto industry participants criticized this move as a significant breach of customer data.

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Ciaran Lyons
Ciaran is a cryptocurrency journalist based in Sydney, Australia. He particularly enjoys writing about CBDC developments and the practical implementations of cryptocurrency in real-world scenarios. He has also appeared across major television networks in Australia including Channel Ten, Channel Nine and SBS TV. Prior to his foray into cryptocurrency, Ciaran worked as a presenter on national radio station Triple J.