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FTX and BlockFi hit by cybersecurity breach

2min Read

FTX and BlockFi experience compromised user data due to a cybersecurity incident involving their claims agent Kroll.

FTX and BlockFi hit by cybersecurity breach

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  • Both FTX and BlockFi assured users that their internal systems and client funds remained unaffected.
  • It was clarified that Kroll didn’t manage account passwords and other data.

Cryptocurrency exchange FTX and crypto firm BlockFi have fallen victim to a “cybersecurity incident” involving compromised user data. Kroll, the bankruptcy claims agent for FTX, experienced the breach, leading FTX to warn affected individuals about potential scam emails.

BlockFi, facing a similar situation, confirmed that unauthorized access to certain client data on Kroll’s platform had occurred.

All about the FTX – BlockFi breach

FTX took to Twitter to share that Kroll, its bankruptcy claim agent, had suffered a “cybersecurity incident” compromising specific non-sensitive user data. FTX clarified that Kroll didn’t manage FTX account passwords and that its own systems remained unaffected.

However, it urged claimants to be cautious of fraudulent and scam emails related to the incident. BlockFi, another crypto entity undergoing bankruptcy, echoed similar sentiments.

The company revealed that it learned of the incident recently and confirmed that unauthorized access to certain client data on Kroll’s platform had occurred. Notably, BlockFi’s internal systems and client funds remained unharmed.

Compromised user data prompts vigilance and swift action

Kroll indicated that an unauthorized third party had gained control of a mobile phone number linked to an employee. That number was used to access files in the company’s cloud-based systems.

These files contained personal data of some claimants, including names, addresses, email addresses, and FTX account balances.

Kroll initiated a swift response to secure the affected account and launched an investigation upon learning of the incident. Claimants received advice to exercise vigilance against potential phishing attempts, as attackers could exploit the compromised information for sending scam emails.

FTX’s current focus includes enlisting the assistance of Mike Novogratz’s Galaxy Digital to manage its cryptocurrency holdings. It is worth noting that FTX had earlier announced the recovery of more than $7.3 billion in cash and liquid crypto assets.

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Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
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