By Michael Scott
A recent announcement by FTX revealed a third-party breach that also affected the bankrupt crypto lender BlockFi. The incident affected Kroll, a third-party agent that FTX shares with BlockFi.
The bankrupt crypto exchange FTX revealed that Kroll involves a third party engaged to manage the creditor claims in the ongoing bankruptcy proceedings. FTX sensitized its users to exercise caution regarding becoming targets of potential fraudulent communications by the perpetrators.
FTX Suffers Data Breach in Third-Party Involved in Creditor Claims Management
The FTX statement conveyed via X, formerly Twitter, indicated that the breach occasioned the compromise of their customers’ data. The experience was similar in crypto lender BlockFi. Nonetheless, the Friday, August 25 statement ruled out breach of passwords. Also, it indicated that other systems were not affected as the breach only succeeded in accessing the non-sensitive customer data.
The post indicated that the breach that hit Kroll only compromised data utilized in notifying both bankrupt firms’ victims over the proceedings’ development. The post obligated the customers to undertake protection themselves and prevent becoming victims of the breach.
FTX Assures Close Monitoring System to Avert Further Breach
While FTX ruled that its systems suffered the breach, it closely monitored the situation to avert a catastrophic outcome. Kroll admitted the data breach, though assured the FTX of quickly containing and remedying the incident. It restated its devotion to securing its system through close monitoring.
BlockFi echoed FTX’s statement admitting the breach in an email sent to inform the users. BlockFi identified that the incident occurred on Wednesday. The confession mirrored Kroll’s statement confirming that the unauthorized third party accessed some client data, including BlockFi.
While Kroll quickly rebuffed the impact of the data breach, BlockFi and FTX questioned the possibility of the perpetrator initiating phishing attempts. FTX indicated that passwords and confidential crypto account information could result in misuse of personal data.
BlockFi warned customers to watch out for potential scams and fraudulent communication. It warned the customers to screen communications by parties that would pose as representatives in the ongoing bankruptcy proceedings.
BlockFi’s Email Rules Out Inquiring Personal Information From Customers
The email conveyed to customers by BlockFi warned that similar incidents recently locked crypto platforms involved in bankruptcy. The email alerted the customers to expect a rise in spam calls and phishing attempts. The email ruled out that BlockFi and Kroll would ever call or text inquiring about one’s personal information.
The data breach sent shockwaves among the companies battling bankruptcy. The concerns arise from the awareness that Kroll offers various services besides bankruptcy management. The firm managing creditor claims also specializes in cybersecurity consultancy.
Kroll has multiple clients across the crypto firms, including Genesis, a Digital Currency Group entity involved in lending. Genesis has yet to issue a statement regarding the breach involved in bankruptcy since January 2023.