FTX Reactivates Claim Portal Post-Cyber Breach: A Detailed Look

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September 17, 2023
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Cryptocurrency trading platform FTX, which had previously ceased operations, recently disclosed the reactivation of its customer claims portal. This portal had been temporarily disabled due to a cyber intrusion that led to the exposure of non-critical data.

The platform clarified that, during this breach, vital systems remained untouched. The cyber assault specifically focused on Kroll, their appointed bankruptcy claims agent. Even though the breach made certain claimants’ non-critical data accessible, the trading platform ensured that essential information like users’ passwords and funds was untouched.

To swiftly counter the security lapse at Kroll, FTX momentarily halted account functionalities. Nonetheless, during this downtime, impacted patrons had the alternative to relay their claims — either using Kroll’s digital submission method or by traditional mail correspondence. FTX also mentioned the introduction of additional security layers to bolster user protection.

FTX, in its formal communication via X (formerly known as Twitter), elaborated that not only those registered with FTX but also users of its sister platforms like FTX US, Blockfolio, FTX EU, FTX Japan, and Liquid are now eligible to access their respective accounts. They can commence the claims procedure for their digital holdings.

Also Read: Google Agrees to $93 Million Settlement Over Location Data in California.

FTX Reactivates Claim Portal Post-Cyber Breach

As disclosed during the bankruptcy hearings, an overwhelming $16 billion in claims from approximately 36,075 patrons have been lodged against both FTX and FTX US. Surprisingly, only a tenth of these claims have reached the confirmation stage for settlements. On top of that, FTX is navigating through non-customer claims that amount to a colossal $65 billion, with prominent firms like Genesis, Celsius, and Voyager leading the charge.

In a parallel development, FTX was granted the nod from the U.S. Bankruptcy Court for the District of Delaware for the sale of its digital assets.

Presiding over the matter, Judge John Dorsey approved FTX’s petition to host weekly digital asset sales, abiding by stringent rules and through a financial consultant’s guidance. The commencement of these sales has a threshold of $50 million, a figure that will be doubled in the ensuing weeks. Nonetheless, major assets such as Bitcoin and Ether, in addition to specific tokens linked to insiders, aren’t sanctioned for disposal as of now. Should FTX wish to vend these specific assets, they are mandated to pass a distinct resolution and furnish a 10-day prior notice to concerned committees and the appointed U.S. trustee.

Saher Mahmood

Saher Mahmood

Author

Saher is a cybersecurity researcher with a passion for innovative technology and AI. She explores the intersection of AI and cybersecurity to stay ahead of evolving threats.

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