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The sensitive customer data from the insolvent cryptocurrency exchange FTX and the lending platform BlockFi has been exposed following a security breach of Kroll, a third-party agency responsible for overseeing creditor claims on behalf of financially distressed firms.
While crypto account passwords and other confidential information remained uncompromised, customers were advised to remain vigilant against potential scammers posing as parties involved in the bankruptcy proceedings.
An “unauthorized third party gained access to certain BlockFi client data housed on Kroll’s platform,” BlockFi said in a tweeted statement, and FTX said it was “closely monitoring the situation.”
Although the internal systems of both crypto companies remain uncompromised, the incident might have instilled concerns that malicious individuals could exploit this situation to obtain even more valuable information, such as seed phrases or passwords.
Kroll, despite not providing an immediate response to CoinDesk's comment request, serves as a bankruptcy service provider for various firms, extending beyond the cryptocurrency industry. Additionally, Kroll's website showcases a cybersecurity consulting service, featuring “elite cyber risk leaders uniquely positioned to deliver end-to-end cyber security services worldwide.”
Kroll also offers its services to Genesis Global Capital, a cryptocurrency company that submitted for insolvency in January. CoinDesk contacted Kroll to verify the impact of the breach on Genesis.
FTX and BlockFi both declared bankruptcy in November of the previous year, subsequent to CoinDesk exposing FTX's financial situation. Presently, both companies are immersed in legal procedures to conclude operations and reimburse their creditors. In recent days, a court in Delaware disclosed that the estate is being depleted by $1.5 million daily due to legal expenses.
