FTX Reinforces Security Measures After Cyberattack on Claims Portal – FTX, the cryptocurrency exchange that recently declared bankruptcy, has been in the headlines again. The exchange’s customer claims portal faced a cyber breach, leading FTX to take swift action to bolster its security measures. This move is pivotal as the exchange navigates its post-bankruptcy journey, striving to regain the trust of its user base.
A Quick Recap
FTX had to suspend its claims portal after a cyberattack targeted its appointed bankruptcy claims agent, Kroll. This breach allegedly exposed non-sensitive data of specific claimants. However, in a sigh of relief for many, FTX confirmed that the breach did not compromise account passwords or funds.
The Road to Recovery
On September 16, via a statement on X (formerly known as Twitter), FTX reassured users that none of its internal systems were impacted by the breach at Kroll. As a precautionary measure, accounts were frozen to ensure the security of users’ assets. Now, with reinforced security protocols in place, the exchange has reactivated its claims portal. This means account holders of FTX and its associated entities (FTX US, Blockfolio, FTX EU, FTX Japan, and Liquid) can resume the process of claiming digital assets they held before FTX’s bankruptcy declaration in November 2022.
As of September 11, reports indicated that around 36,075 customer claims amounting to $16 billion were filed against FTX and FTX US, with agreements reached on 10% of these claims. An additional 2,300 non-customer claims worth a staggering $65 billion were also lodged, with notable claimants including Genesis, Celsius, and Voyager.
Past Hurdles and the Path Forward
It’s not been smooth sailing for FTX’s claims portal. Launched on July 11, it went offline within an hour for reasons that remain unclear. Later, on August 27, FTX had to temporarily suspend accounts accessing its claims portal after the cyberattack on Kroll was detected. However, users were still able to submit proof-of-claim via Kroll’s online form and through traditional mail.
In a related development, the U.S. Bankruptcy Court for the District of Delaware has granted FTX permission to sell its digital assets. Under the ruling by Judge John Dorsey on September 13, FTX can sell its assets in weekly batches through an investment adviser. The first week’s sale is capped at $50 million, with the cap doubling in the following weeks. However, FTX can’t sell its Bitcoin, Ether, and certain insider-affiliated tokens without a separate decision and a 10-day notice to relevant committees and the U.S. trustee.
In conclusion, as FTX continues its efforts to rebuild and reassure its user base, the emphasis on fortified security measures showcases the exchange’s commitment to protecting its users’ assets and interests.