- Bankrupt cryptocurrency exchange FTX has reactivated access to its customer claims portal.
- This follows a shutdown of its claim portal which took place after a cyber attack of Kroll, which was responsible for handling creditor claims on behalf of FTX.
- Claimants have until September 29th to submit their proof of claims through the portal.
Following the cyber breach of non-sensitive data, bankrupt cryptocurrency exchange FTX has reactivated account access to its customer claims portal
The now bankrupt cryptocurrency exchange FTX restored its customer claims portal with tighter security protocols, which was previously shutdown due to a cyberattack.
Those who had their assets held in FTX prior to insolvency in November, 2022, can continue to submit their claims for assets. The assets include; FTX US, Blockfolio, FTX EU, FTX Japan and Liquid.
The breach targeted Kroll, a third-party agent responsible for handling creditor claims on behalf of FTX.
How the attack took place
An “SIM swap” attack was launched as a result of hostile actors taking advantage of a vulnerability. Due to this compromise, unauthorized access was granted to files holding vital information regarding claims connected to BlockFi, FTX, and Genesis.
FTX took quick action to control the problem. They promptly froze the compromised user accounts after discovering the intrusion, thus limiting any possible harm.
According to FTX, the closing of the accounts were precautionary, allowing them to add additional security measures. No password or KYC data leaked
“No FTX systems were impacted by the Kroll incident, and freezing accounts was a precautionary measure” they said in a statement
The temporary suspension of the accounts took place on August the 27th after the cybersecurity attack against Kroll was discovered. During the shutdown, claimants could still submit a proof-of-claim through Kroll’s online customer form and by email.
The customer claims portal was launched on July 11 but went offline for unknown reasons after only one hour.
The statement posted on X (formerly twitter), on September 16th read,
“Regarding the recent Kroll cybersecurity incident, FTX has unfrozen all the affected accounts.. Claimants may now resume activities on our platform: https://claims.ftx.com, where we have implemented additional security measures. No FTX system were impacted by the Kroll incident, and freezing accounts was a precautionary measure”
FTX on X: “FTX provided the following update regarding the recent Kroll cybersecurity incident. Claimants may now resume activities on our platform: https://t.co/DkYi2hDLbI. https://t.co/Nfob4QQxjv” / X (twitter.com)
About 36,075 customer claims totaling $16 billion have been made against FTX and FTX.US as of September 11; 10% of these claims had been granted. In addition, 2,300 claims from non-customers totalling $65 billion have been submitted, including claims from Voyager, Celsius, and Genesis.
FTX users who are claimants in the affected cases have until September 29 to submit their proof of claim through the portal.
About FTX
FTX was the third-largest cryptocurrency exchange by volume and had over one million customers. At its height in January, 2022, Forbes reported that the now bankrupt crypto currency exchange firm was valued at $32 Billion after raising additional $ 400 million in funding, making its founder Sam Bankman-Fried, the richest 29 year old billionaire.
However, a few months later, the once busiest crypto exchange firm experienced a liquidity crisis of its token, FTT which served as the impetus for its bankruptcy in November of 2022. At its collapse, the exchange owed customers $8.7 billion worth of assets. Recovery process is ongoing, according to Investopedia report published in June, FTX and its associated debtors had already been able to recover around $ 7 billion worth of assets.
