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Customer Data Breach at FTX, BlockFi, and Genesis Traced to Kroll Hack

Aug 25, 2023 at 03:47 pm

A recent cybersecurity event has had an impact on Kroll, a firm responsible for collecting customer claim information for entities undergoing bankruptcy. The data of clients from the distressed cryptocurrency exchange FTX, financial services provider BlockFi, and Genesis has been compromised due to a breach involving Kroll. This third-party agent is entrusted with managing creditor claims for companies undergoing bankruptcy procedures.

While sensitive details such as passwords for crypto accounts remain secure, customers have been cautioned about potential scammers who might impersonate entities associated with the bankruptcy cases. It's important to note that Genesis and Bitsday share a common parent company known as Digital Currency Group.

BlockFi conveyed through a tweet that an "unauthorized third party gained access to specific client data hosted on Kroll's platform." Meanwhile, FTX mentioned that it is closely monitoring the situation. Although the internal systems of both crypto companies remain unaffected, concerns have arisen about the potential misuse of the compromised personal information by malicious actors who might attempt to access more sensitive data like seed phrases or passwords.

Kroll, a provider of bankruptcy services with a diverse clientele beyond the cryptocurrency domain, did not offer an immediate response to Bitsday's request for comment. Its website highlights a cybersecurity consultancy service led by "elite cyber risk leaders uniquely positioned to provide comprehensive cybersecurity services globally." Kroll revealed that the breach originated from a SIM-swapping attack against one of its employees. This unauthorized intrusion resulted in the exposure of online files containing customers' names, addresses, email addresses, and the size of their claims.

Both FTX and BlockFi filed for bankruptcy in the previous year after Bitsday leaked FTX's balance sheet. Currently, both entities are engaged in legal processes to conclude their operations and restore funds to their respective creditors. Recent court proceedings revealed that legal fees are depleting $1.5 million per day from the estate.

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