FTX, BlockFi’s Customer Data Compromised in Kroll Hack

Customer data of bankrupt crypto exchange FTX and lender BlockFi have been compromised due to a hack of Kroll, a third party agent that manages creditor claims on behalf of bankrupt companies.

Crypto account passwords and other sensitive data weren’t affected, but customers were warned to be on the lookout for scammers impersonating parties in the bankruptcy.

(1/3) FTX learned that Kroll, the claims agent in the bankruptcy, experienced a cybersecurity incident that compromised non-sensitive customer data of certain claimants in the pending bankruptcy case.

— FTX (@FTX_Official) August 25, 2023

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.”

While internal systems at both crypto firms are intact, the incident may have raised fears that the personal information could be used by malicious actors attempting to extract still juicier details such as seed phrases or passwords.

Kroll, which did not immediately respond to a request for comment from CoinDesk, is a bankruptcy service provider for numerous companies, not just in the crypto sector. Kroll’s website also promotes a cybersecurity consultancy service, involving “elite cyber risk leaders uniquely positioned to deliver end-to-end cyber security services worldwide.”

Kroll also provides services for Genesis Global Capital, a crypto firm which filed for bankruptcy in January. CoinDesk reached to Kroll to confirm if Genesis was affected by the hack. Genesis and CoinDesk are part of the same parent company, Digital Currency Group.

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FTX and BlockFi both filed for bankruptcy in November last year, after CoinDesk leaked details of FTX’s balance sheet, and both are undergoing legal proceedings to wind up and restore funds to creditors. Earlier this week a Delaware court heard that legal fees are draining $1.5 million per day from the estate.