UpdatesSep 19, 2023

FTX Restores Claims Platform After Recent Security Breach

The cryptocurrency exchange that went bankrupt still arouses a lot of interest.

An online portal that allows former FTX customers to submit claims related to the collapsed exchange has been restored to functionality following a recent security incident. All user accounts that were affected by the breach in August this year have been unfrozen.

FTX is bringing back its online claims platform

It is no secret to the broadly understood cryptocurrency community that at the end of August 2023, FTX made a shocking decision to freeze some user accounts. This took place after a cyberattack on Kroll, an agency whose goal is to manage claims from former users of the bankrupt cryptocurrency derivatives exchange. It is easy to guess that after the traumatic experiences of the clients of this bankrupt platform, this incident caused a lot of controversy, and FTX was forced to take immediate action to secure its IT systems and user data.

Now former FTX customers have significant reason to feel relieved. This comes as the bankrupt company announced that its claims portal is fully accessible to affected users again. In an official statement issued by people who currently officially represent FTX, it was stated that after reviewing and assessing the recent incident related to the hacker attack, the company has unfreezed all accounts that were temporarily affected by the problem.

This is extremely good news for people who have filed claims in connection with the collapse of the mentioned digital currency exchange. Now all injured customers will be able to resume and continue the process of recovering their receivables.

Hacker attack parameters

It is worth being aware that the entire incident began when Kroll, an agency dealing with claims management, revealed an attack on one of the accounts of an employee of the telecommunications company T-Mobile US. The incident involved the attacker transferring this employee's phone number to his own phone, which in turn allowed him to gain access to some files containing personal data of bankruptcy applicants in cases related to platforms such as FTX, Blockfi and Genesis.

However, according to Kroll, there is no evidence that the attack affected other systems or accounts. Furthermore, FTX immediately took preventive actions to appropriately secure the accounts and data of all at-risk users.

The process of liquidation of digital assets

Meanwhile, FTX received official permission from a bankruptcy judge to liquidate its cryptocurrency holdings, worth over $3.4 billion in total. The funds from this action were to be used to repay injured creditors. The digital assets to be liquidated include various cryptocurrencies, including $560 million in Bitcoin (BTC), $192 million in Ethereum (ETH) or, for example, $1.16 billion in Solana (SOL).