FTX crypto exchange, which has been facing financial challenges, reported a data breach involving its bankruptcy case claims agent, Kroll. FTX has taken immediate action to address the situation and ensure the security of accounts, passwords, systems, and funds.

Breach Impact and Response

On August 25, FTX used the X platform to communicate the cybersecurity breach to its customers, creditors, and the general public. The breach specifically involves its claims agent, Kroll, and has resulted in the exposure of non-sensitive customer data associated with certain claimants involved in the ongoing bankruptcy case.

Protecting Impacted Individuals

FTX has promptly collaborated with Kroll to inform the individuals affected by the cybersecurity incident. Additionally, Kroll is actively guiding these individuals on the necessary steps they can take to safeguard themselves. It’s important to note that FTX’s account passwords and internal systems remain secure and unaffected by the breach.

According to FTX,

“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.”

Swift Response, Oversight and Celsius Network Data Breach

The FTX Debtors, fully committed to resolving the situation, have initiated communication with Kroll. Moreover, they are vigilantly overseeing the unfolding events and ensuring appropriate measures are taken.

Kroll, for its part, has acted swiftly to contain and address the incident. However, customers are advised to exercise caution against potential fraudulent and scam emails that might impersonate entities involved in the bankruptcy proceedings.

In an alarming development, blockchain investigator ZachXBT reported instances of fraudulent emails being received by FTX clients. This further suggests that personal customer information may have been compromised, raising further concerns about security.

Similarly, Celsius Network, a crypto lending platform grappling with bankruptcy, has also fallen victim to a data breach. This breach specifically involves the exposure of their email records, which has had a significant impact on the ongoing process of bankruptcy reorganization.

Strategic Partnership to Mitigate Risks

Amid these challenges, FTX has entered into a strategic partnership with Galaxy Digital, led by Mike Novogratz. This collaboration aims to enhance FTX’s capabilities in managing selling, staking, and hedging activities. The goal is to effectively mitigate risks associated with market volatility and optimize returns from Bitcoin holdings.

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