FTX Resumes Claims Process After Security Breach

The FTX claims portal is now fully operational once again, having successfully resolved the freezing of user accounts stemming from a recent cybersecurity breach that targeted Kroll, the third-party agent handling creditor claims for FTX’s bankruptcy proceedings.

FTX, in an official statement announcing the restoration of normal operations, emphasized that the temporary freeze on customer accounts was a precautionary step taken to ensure security. They also highlighted the implementation of additional security measures on the claims platform.

In August, Kroll disclosed that a “SIM swapping” attack had exposed certain files containing personal information of bankruptcy claimants related to BlockFi, FTX, and Genesis. In response to this incident, Kroll temporarily froze the accounts that were affected. Importantly, Kroll clarified that no FTX passwords or KYC (Know Your Customer) information were compromised in the breach.

FTX users have until September 29 to submit a proof of claim to Kroll. While the exact extent of creditor recovery remains uncertain, it’s worth noting that the judge overseeing FTX’s bankruptcy case recently approved the estate’s plan to initiate the liquidation of its digital assets.

Image Credit: Shutterstock