FTX freezes accounts after a security alert from Kroll

By: Michael Wilson

August 28, 2023 7:41 AM

Following the recent hack, FTX made the decision to take preventative action to avoid any other instances of harm.

Bankrupt cryptocurrency exchange FTX has temporarily barred affected individuals' accounts from using its claims portal following the latest Kroll cybersecurity incident.

As a preventative precaution after the recent hack, FTX announced→ the decision on X (previously Twitter).

Users were urged not to make any changes to their claims or the approved schedules as a result of the event. According to FTX, the Kroll client claims the site is still a safe and reliable way to submit claims.

Data related to claimants in the ongoing bankruptcy proceedings of FTX was exposed due to a breach at Kroll, the designated claims and noticing agent. In response, Kroll assured FTX that it was actively managing the matter and would continue to monitor it. Following this reassurance, FTX provided evidence that passwords, internal systems, and funds were not compromised by the breach.

Kroll is providing direct guidance to affected persons on how to take safety measures. Kroll did not have access to any FTX account passwords, and FTX's internal systems were untouched, the company said.

In spite of this, blockchain expert ZachXBT confirmed that phishing emails have begun reaching FTX clients, raising concerns that their private information may have been hacked.