FTX’s data breach was revealed to be sensitive information despite claims that it was ‘not sensitive’. For this reason, crypto exchange users are warned to be careful about increasing frauds.
Crypto exchange says ‘not sensitive’, but…
Kroll, which is handling FTX’s bankruptcy case, suffered a cybersecurity breach on August 25 that exposed a wide range of sensitive customer data, according to a recent report. FTX previously claimed that only “non-sensitive” data was exposed. This latest statement contradicts the first statement, which underestimated the seriousness of the incident.
In an alleged Q&A summary Kroll posted on August 30, FTX users’ email addresses, postal addresses, account numbers, unique bankruptcy identifiers, account balances, phone numbers, and other claim details were disclosed by FTX on August 24. It was reported that it was breached in a cyber security incident that was revealed. Previously, FTX wrote that Kroll “experienced a cybersecurity incident that compromised non-sensitive customer data of some claimants in the ongoing bankruptcy case.”
Kroll Data Leak Urgent
Kroll email (25 Aug) saying that name, address, email address, and the balance in FTX account was leaked
On Kroll's Q&A they state the information leaked is the above +
FTX account no., Unique ID and Phone numbersCreditors Please be Safe pic.twitter.com/HaYhttZLAs
— Sunil (FTX Creditor Champion) (@sunil_trades) August 30, 2023
Crypto exchange users need to be careful
Immediately after the incident, FTX said that Kroll did not keep the account passwords. He also clarified that the firm’s own systems, along with its crypto assets, were not affected. A day later, the bankrupt exchange stated that it would temporarily freeze the accounts of affected customers within its claims portal. Kroll has since “contained and corrected” the incident, according to the report.
However, it warned that users should remain on “high alert” for seemingly legitimate “scams and fraud” attempts through stolen data. Shortly after the breach, numerous users began reporting phishing emails that appeared to be from Kroll. The issue also attracted the attention of Changpeng Zhao (CZ), CEO of Binance, the world’s largest crypto exchange. CZ shared the following about the issue on his X account:
New phishing attacks are currently ongoing for victimized users of FTX, BlockFi and Genesis as a result of the Kroll data leak, which is thought to have occurred when an employee changed their SIM card.
New rounds of phishing attacks already underway for the poor users of FTX, BlockFi, Genesis, as a result of the Kroll data leak, which seems to be a result of a SIM swap on an employee.🤷♂️
Learn to protect yourself. Learn about phishing attacks👇https://t.co/AtcevQciVR pic.twitter.com/pbHFnhsArK
— CZ 🔶 Binance (@cz_binance) August 27, 2023
Background to FTX’s problems
FTX, once a leading crypto exchange, filed for bankruptcy last year. Moreover, the company was shocked by a massive $400 million hack. He faced accusations that this hack was an ‘insider job’. A subsequent investigation by the US Department of Justice further damaged the company’s reputation. Legal proceedings related to this bankruptcy were extensive and costly. It reached $32.5 million in February alone. cryptocoin.comAs you follow from , this process and the recent data breach have destroyed trust in the stock market.
Additionally, although the situation at Kroll is stabilizing, customers are advised to exercise extreme caution as FTX and Kroll work to mitigate the damage and protect affected users. However, with information already exposed, it is up to individual users to remain vigilant against fraudulent activities.
