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Crypto Exchange FTX Freezes Accounts Following Kroll Cybersecurity Incident

After a cybersecurity breach at Kroll, FTX, a bankrupt crypto exchange, halted specific user accounts. The breach potentially exposed personal user data.

Fri, 01 Sep 2023, 11:11 am UTC

FTX, a recently bankrupt cryptocurrency exchange, has temporarily halted the accounts of certain users in the wake of a cybersecurity lapse at Kroll. This decision, announced on X (previously known as Twitter), aims to shield users from potential subsequent threats originating from the security incident.

In the aftermath of the breach, FTX directed users to refrain from tweaking their submitted claims or revising any accepted timelines. The exchange reassured that all the information fed into the Kroll customer claims platform continues to be both protected and accurate.

Kroll, assigned as the claims and notification agency during FTX's ongoing bankruptcy phase, encountered a security issue. This breach resulted in the leakage of non-critical data linked to claimants in the bankruptcy proceeding. After the episode, Kroll briefed FTX about their robust management of the issue and confirmed that they are maintaining rigorous supervision. In turn, FTX confirmed the integrity of their users' account passwords, internal operations, and monetary assets.

For those affected, Kroll has taken the onus to communicate directly, briefing them about safeguarding measures they can adopt. Elaborating further, FTX emphasized that their collaboration with Kroll never involved the sharing of FTX account passwords. Additionally, they maintained that the security of their internal infrastructure remains intact.

However, a recent update from blockchain specialist, ZachXBT, points to a concerning trend. He confirmed that FTX clientele have started receiving deceitful emails, leading to speculations about the potential exposure of their personal details.

FTX, established by Sam Bankman-Fried and Gary Wang in 2017, quickly ascended in the cryptocurrency sector. Through proclaimed innovative products, user-friendly platforms, and strategic partnerships, the exchange garnered a substantial user base and solidified its status as a leading crypto marketplace by 2019. In 2022, it met its demise after its co-founder was in a series of controversies regarding the value of its token, FTT and insider trading.

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