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FTX reveals security breach linked to claim handler Kroll in bankruptcy case

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FTX bankruptcy case

FTX reveals security breach linked to claim handler Kroll in bankruptcy case

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FTX, the now-defunct cryptocurrency exchange, discovered a security compromise involving its bankruptcy case claims manager, Kroll, in which selected claimants’ limited, non-sensitive customer data was exposed.

FTX is aggressively managing the problem to ensure that client account passwords, systems, and funds are not compromised.

The troubled cryptocurrency exchange used the X platform on August 25 to alert its customers, creditors, and the broader public of a cybersecurity breach involving their claims handler, Kroll.

This compromise exposed non-sensitive customer data from certain claimants involved in the ongoing bankruptcy proceeding.

Kroll is presently advising affected persons on the steps they can take to protect themselves in the aftermath of this cybersecurity catastrophe, according to FTX.

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The cryptocurrency exchange in bankruptcy has also clarified that its account passwords and systems are still secure.

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“The incident occurred at Kroll, and Kroll is notifying affected individuals directly with measures that customers can take to protect themselves. FTX account passwords were not maintained by Kroll, and FTX’s own systems were not affected.”

Additionally, the FTX Debtors have initiated contact with Kroll and are closely monitoring the evolving situation. Kroll has assured the debtors that they have promptly taken control of and resolved the incident.

Customers are strongly advised to exercise caution in response to potential fraudulent and scam emails that may impersonate entities involved in the bankruptcy proceedings.

Meanwhile, blockchain researcher ZachXBT has claimed that FTX clients are already receiving bogus emails, and customer personal information has been hacked.

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In a second instance, Celsius Network, a crypto lending company that is presently in bankruptcy, experienced a data breach that exposed their email records. This breach has had a major influence on the ongoing bankruptcy reorganization process.

FTX has sought the support of Galaxy Digital, managed by Mike Novogratz, to help manage its sales, staking, and hedging activities in the midst of these obstacles.

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