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Market News

FTX & BlockFi’s Customer Data Breaches in Kroll Hack

FTX and BlockFi have advised their customers to be careful with scammer impersonation parties in bankruptcy through the platform X.

Written By:
Dhara Chavda

Last updated: August 25, 2023 1:55 PM
Published August 25, 2023 1:55 PM
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Last updated: August 25, 2023 1:55 PM
Published August 25, 2023 1:55 PM
FTX & BlockFi’s Customer Data Breaches in Kroll Hack

A bankrupt crypto exchange, FTX, and lender BlockFi have announced cybersecurity violations, as their bankruptcy claims agent, Kroll gets hacked. They are claiming that a small amount of non-sensitive customer data of some claimants was exposed.

(1/3) 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.

— FTX (@FTX_Official) August 25, 2023

Customers, creditors, and the general public were made aware of cybersecurity incidents involving FTX’s claims agent, Kroll, on August 25 via a post on the X platform.  On the same platform, BlockFi posted, “An unauthorized third party gained access to certain BlockFi client data housed on Kroll’s platform.”

Regarding recent third-party data incident: pic.twitter.com/WdezgAerLF

— BlockFi (@BlockFi) August 24, 2023

Both companies have warned their customers to be careful with scammers impersonation parties in bankruptcy. However, there is no effect on the crypto account password or other sensitive data.

FTX has stated that “FTX account passwords were not maintained by Kroll, and FTX’s own systems were not affected.” BlockFi also clarified that its internal system and client funds are safe, and clients’ passwords were never stored on Kroll.

The debtors of FTX are carefully overseeing the unfolding situation and have started communication with Kroll. Kroll has informed the debtors that they handled the incident quickly and appropriately. 

However, FTX clients have already received fraudulent emails. Be cautious and stay safe, everyone.  

Also Read: BlockFi says FTX and 3AC Are Not Entitled to Repayments

Disclaimer: The information researched and reported by The Crypto Times is for informational purposes only and is not a substitute for professional financial advice. Investing in crypto assets involves significant risk due to market volatility. Always Do Your Own Research (DYOR) and consult with a qualified Financial Advisor before making any investment decisions.

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Dhara Chavda- Crypto Research Analyst at The Crypto Times
By Dhara Chavda
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Dhara Chavda is a Content Strategist and Research Analyst with 5 years of experience in the crypto industry. She holds a Bachelor’s degree in Computer Engineering and brings a strong technical perspective to her work. Dhara specializes in DeFi, price analysis, and the core mechanics of cryptocurrencies. She also works on crypto news, including research, analysis, and assigning stories, ensuring accurate and timely coverage of key developments in the space.

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