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Posted:
- FTX confirmed that the breach did not affect any of its systems.
- The exchange launched its customer claims portal on July 11, but inexplicably went offline within an hour
Bankrupt cryptocurrency exchange FTX has taken steps to strengthen the security of its customer claims portal after a cyber breach. This allowed claimants to continue making claims for assets held on the exchange before it became insolvent.
According to FTX, none of its systems were affected by the breach, which targeted its appointed bankruptcy claims administrator, Kroll. The breach exposed non-sensitive customer data of specific claimants, with FTX emphasizing that account passwords and funds remain unaffected.
FTX has provided the following update on the recent Kroll cybersecurity incident. Claimants can now resume their activities on our platform: https://t.co/DkYi2hDLbI. pic.twitter.com/Nfob4QQxjv
— FTX (@FTX_Official) September 16, 2023
Improved asset measures and progress
Account holders can now access their accounts and continue the claim process for digital assets held on the platform before the bankruptcy declaration in November 2022. This applies to individuals who had accounts with FTX, FTX.US, Blockfolio, FTX EU, FTX Japan and liquid.
As of September 11, approximately 36,075 customer claims worth $16 billion had been filed against FTX and FTX.US, with 10% of these claims approved. In addition, there were 2,300 non-customer claims filed totaling $65 billion, including claims from Genesis, Celsius and Voyager.
FTX clarified that freezing the accounts was a precautionary measure. It added that it has since implemented additional safety measures. The exchange has taken these measures in response to several issues recently reported to the claims portal.
FTX launched the customer claims portal on July 11. However, it inexplicably went offline within an hour of launch.
On August 27, FTX temporarily suspended accounts for affected users who accessed the claims portal after the initial discovery of the cybersecurity attack on Kroll. Despite the suspension, users could still submit proof of claim via Kroll’s online customer form and by mail.
In another related development, the U.S. Bankruptcy Court for the District of Delaware recently approved the sale of FTX’s digital assets. Judge John Dorsey issued a ruling on September 13 that allowed FTX to sell assets in weekly batches, under strict conditions, through an investment adviser.
The first week has a cap of $50 million, followed by $100 million in subsequent weeks. However, FTX remains prohibited from selling Bitcoin [BTC]Ethereum [ETH]and “certain insider-affiliated tokens” without a separate decision, upon 10 days’ notice to committees and the US Trustee.