In a recent development, cryptocurrency giants FTX and BlockFi have issued warnings to their customers regarding a data breach that occurred within one of their vendors. The breach resulted in the leak of sensitive information, raising concerns about the security of users’ data.
Both FTX and BlockFi were highly popular cryptocurrency trading platforms until they filed for bankruptcy in November. FTX was in the process of acquiring BlockFi before the latter succumbed to bankruptcy. The bankruptcy proceedings left thousands of FTX and BlockFi users in a state of financial uncertainty, with millions of dollars worth of cryptocurrency trapped within the platforms.
To address the issue, both FTX and BlockFi enlisted the services of advisory firm Kroll to create a claims administrator platform. This platform aimed to facilitate the return of funds to users affected by the bankruptcies. However, on Wednesday, Kroll informed FTX and BlockFi about a data incident.
FTX announced that the incident occurred at Kroll, the claims agent handling the bankruptcy case, resulting in the compromise of non-sensitive customer data for certain claimants. FTX emphasized that its own systems were unaffected, and Kroll promptly contained and remediated the incident. Nevertheless, FTX advised users to remain vigilant against potential scam emails and fraudulent calls.
Similarly, BlockFi released a statement informing users that an unauthorized third party gained access to customer data held on Kroll platforms. BlockFi confirmed that its internal systems and client funds remained secure, and customer passwords were not stored on Kroll’s platform.
Neither Kroll nor the cryptocurrency platforms have provided details about the number of affected users or the type of information accessed. However, both FTX and BlockFi stressed the importance of measures such as two-factor authentication and enhanced cyber hygiene to protect users from potential phishing attempts and spam phone calls.
The BlockFi Official Committee of Unsecured Creditors, representing former BlockFi users, issued a warning to its members and assured them that they were actively collaborating with BlockFi and Kroll to understand the situation and safeguard customer interests.
This incident involving FTX and BlockFi follows a recent cyberattack within the bankrupt cryptocurrency platform Voyager, which had ties to BlockFi and FTX. Voyager had recently reopened its platform for a limited period, but it was subsequently hacked, resulting in funds being drained from customers’ wallets.
As the investigation into these incidents continues, both cryptocurrency platforms stress that they will never contact customers via phone, email, or text to request personal information. Customers are encouraged to visit the official platforms’ websites directly to ensure the safety of their accounts.
The implications of these data breaches on the broader cryptocurrency industry remain to be seen, emphasizing the need for robust security measures to protect users’ digital assets.
