FTX bolsters claims portal security measures following cyber breach
2 min read
Bankrupt cryptocurrency exchange FTX has restored its customer claims portal with tighter security protocols, which was previously shut down due to a cyber attack. Claimants can now continue to submit claims for assets they held on the exchange prior to it becoming insolvent.
On Sept. 16, FTX made a statement on X (formerly Twitter), confirming that none of its systems were affected by the cyber breach involving its appointed bankruptcy claims agent, Kroll.
FTX provided the following update regarding the recent Kroll cybersecurity incident. Claimants may now resume activities on our platform: https://t.co/DkYi2hDLbI. pic.twitter.com/Nfob4QQxjv
— FTX (@FTX_Official) September 16, 2023
The breach allegedly exposed non-sensitive customer data of specific claimants. FTX has assured that account passwords and funds were unaffected.
FTX declared that account holders of the now-defunct crypto exchange can now access their accounts and proceed with the claims process for digital assets they held on the exchange prior to it declaring bankruptcy in November 2022.
Specifically, the claims portal is available to individuals who held accounts with FTX, FTX US, Blockfolio, FTX EU, FTX Japan and Liquid.
On Sept. 11, Cointelegraph reported that approximately 36,075 customer claims, worth $16 billion have been filed against FTX and FTX US, and 10% of those have been agreed on.
It was further noted that 2,300 non-customer claims have been filed against the entity, worth $65 billion, including those from Genesis, Celsius and Voyager.
FTX asserted that freezing the accounts was a precautionary step and additional security measures have been implemented.
No FTX systems were impacted by the Kroll incident, and freezing accounts was a precautionary measure.
This comes after numerous reports of issues with the claims portal in recent times.
On Aug. 27, FTX declared a temporary suspension of accounts for affected users who accessed its claims portal after the cybersecurity attack against Kroll was initially discovered.
However, users could still submit a proof-of-claim through Kroll’s online customer form and by mail.
Related: FTX claims portal becomes unavailable shortly after going live
The customer claims portal was launched on July 11 but went offline for unknown reasons after only one hour.
In related news, the Delaware Bankruptcy Court has recently granted approval for the sale of FTX’s digital assets.
On Sept. 13, Judge John Dorsey issued a ruling permitting FTX to sell off assets in weekly batches, with strict conditions, through an investment advisor. The initial week will have a limit of $50 million, followed by $100 million in subsequent weeks.
However, FTX is currently prohibited from selling its Bitcoin (BTC), Ethereum (ETH), and “certain insider-affiliated tokens.” Any potential sales of these assets require a separate decision by FTX, following a 10 days’ notice to the committees and U.S. Trustee.
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