Attention: These Crypto Platforms Are Leaking Data! Listed on FTX

Prior to what happened at FTX today, the bankrupt crypto platform Celsius had a serious data breach. In the latest development, FTX reported the data breach involving bankruptcy representative Kroll.

Bankrupt crypto platforms put investors in danger

Crypto exchange FTX, which crashed in November 2022, announced a cybersecurity breach that exposed customer data. The incident exposed limited, non-sensitive customer data of certain plaintiffs, including bankruptcy lawsuit compensation agent Kroll. Then, FTX reported that it was actively monitoring the situation, ensuring that account passwords, systems and funds were not affected.

The crypto exchange in a difficult situation made a statement on the subject from account X. The security breach resulted in the exposure of customer data of the exchange’s users in connection with the bankruptcy case.

FTX stated that the victim Kroll has now briefed individuals affected by the cybersecurity incident on steps they can take to protect them. The bankrupt crypto exchange explained that its account passwords and systems remain secure:

Kroll was affected by the incident and he is directly informing affected individuals about the actions customers can take to protect themselves. FTX account passwords were not protected by Kroll, and FTX’s own systems were also unaffected.

compensation process

In addition, FTX Borrowers have communicated with Kroll and are closely monitoring the evolving situation. Kroll informed the debtors that they quickly got the incident under control and resolved it. Customers need to be wary of crypto scam emails pretending to be people involved in bankruptcy proceedings.

It’s not the first time crypto platforms leak customer data

A similar breach came to the fore on Celsius Network, another crypto platform facing bankruptcy. The crypto platform recently suffered a data breach that resulted in its email logs being exposed. This breach had a notable impact on the ongoing bankruptcy restructuring process.

Meanwhile, Blockchain researcher ZachXBT reported that FTX customers have already received fake emails. Accordingly, the personal information of some customers is currently circulating.

FTX makes moves for refunds

In recent developments, FTX has enlisted Galaxy Digital, led by Mike Novogratz, to help manage sales, staking and hedging efforts. This partnership aims to support the crypto exchange’s efforts to mitigate risks associated with market volatility and optimize returns from Bitcoin holdings. As we have quoted as Kriptokoin.com, especially Bitcoin and Ethereum will be used for staking.

Finally, Decentralized Finance also received approval in the application. FTX stated that it would prefer staking to generate passive income under Galaxy Digital’s guidance:

Borrowers state that staking certain cryptocurrencies according to the method of staking will benefit the property and ultimately the creditors, creating low-risk returns from normally idle cryptocurrencies.