FTX suspends user accounts amid Kroll cyber breach concerns

FTX's decision was undertaken as a proactive measure aimed at preventing the occurrence of any potential future incidents or additional harm following the recent hack.

Following the recent Kroll cybersecurity breach, FTX Derivatives Exchange, a financially distressed cryptocurrency trading company, has opted to temporarily suspend accounts of impacted users accessing its claims portal.

FTX's decision which was posted on X (formerly known as Twitter) was undertaken as a proactive measure aimed at preventing the occurrence of any potential future incidents or additional harm following the recent hack. The exchange is dedicated to offering more comprehensive information in the subsequent stages.

Users were strongly advised against making any modifications to their claims or making alterations to the accepted schedules in response to the incident. FTX emphatically stated that all the claim data that had been submitted through the Kroll customer claims portal remains secure, meticulously recorded and unequivocally valid.

Kroll Restructuring Administration, the appointed claims and noticing agent for FTX's ongoing bankruptcy proceedings, found itself subject to a breach that led to the exposure of non-sensitive data associated with claimants involved in the bankruptcy case. In response, Kroll provided FTX with reassurances regarding their active management of the situation and their continued oversight. FTX subsequently offered substantiation of this assurance by verifying that the breach had no impact whatsoever on the security of account passwords, internal systems, or financial funds.

Related: Judge to hear Sam Bankman-Fried's defense against 4M pages of newly released evidence

FTX conveyed through the X app that the incident transpired at Kroll, and Kroll itself is directly informing impacted individuals about precautionary steps for self-protection. FTX clarified that Kroll did not handle FTX account passwords and that FTX's internal systems remained unaffected.

Nevertheless, blockchain analyst ZachXBT verified that phishing emails have started reaching FTX customers, suggesting the potential compromise of their personal data.

Magazine: Crypto regulation: Does SEC Chair Gary Gensler have the final say?

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