FTX Investor Data Compromised After Kroll Cyber Attack

FTX Bankruptcy Claims Agent Kroll Experience Security Incident
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Kroll, the claims agent in the defund cryptocurrency exchange FTX bankruptcy case, has reportedly suffered a cybersecurity incident, and the non-sensitive data of some claimants has been compromised.

The official FTX account on X announced that Kroll had recently suffered a breach, but no sensitive data like passwords was compromised as the claims agent didn’t store FTX accounts. Only the non-sensitive data of some claimants was stolen. No FTX systems were affected in the incident.

The announcement reads:

“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.”

FTX Advises to Beware of Scammers

Not much details about the incident are available yet. Per the announcement, Kroll has assured FTX debtors that it has contained the attack and that no severe damage has happened. FTX has advised claimants to beware of scammers and emails impersonating parties in the bankruptcy.

According to FTX:

“Kroll has assured the FTX Debtors that it promptly contained and remediated the incident, and the FTX Debtors are closely monitoring the situation. Please remain on high alert for attempted fraud and scam emails impersonating parties in the bankruptcy.”

Per the reports, FTX online claim submission uploading to the Kroll website began on August 18. This immediately got the attention of scammers and cybercriminals. Fortunately, Kroll didn’t store any sensitive information.

FTX Advises to Beware of Scammers

FTX Wants to Hedge Remaining Funds with Galaxy Digital

In other developments to this infamous crypto bankruptcy case, FTX is looking to safeguard its idle crypto holdings by hedging or putting to work by selling or staking. In a Wednesday, August 23 filing, FTX asked the court if it’s allowed to stake, among other activities, its remaining crypto assets.

The firm has requested Mike Novogratz’s Galaxy Digital as its investment advisor and to sell certain digital assets the company has recovered, mainly Bitcoin and Ethereum. According to the filing, Galaxy Digital will be charged with “creating and preserving value” for FTX and its creditors by hedging and staking its large crypto pile.

An April filing suggests that FTX has a whopping $3.4 billion worth of liquid crypto assets. In a later filing, the firm said it intended to convert its crypto pile to cash to make whole US customers. On the other hand, the bankruptcy management under John J. Ray III is moving ahead with plans to launch a rebooted exchange, dubbed FTX 2.0.


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