FTX Enhances Security Measures for Claims Portal Post Cybersecurity Breach


Following a cybersecurity breach that exposed non-sensitive customer data, bankrupt cryptocurrency exchange FTX has fortified the security of its customer claims portal, which was temporarily disabled. This development now allows claimants to resume the process of submitting claims for the digital assets they held on the exchange before its insolvency declaration.

On September 16, FTX took to X (formerly Twitter) to confirm that none of its systems were compromised during the breach, which involved its appointed bankruptcy claims agent, Kroll. Crucially, no account passwords or funds were impacted.

FTX announced that account holders from the defunct crypto exchange, including FTX, FTX US, Blockfolio, FTX EU, FTX Japan, and Liquid, can now access their accounts and continue with the claims process. As reported previously, approximately 36,075 customer claims, amounting to $16 billion, have been filed against FTX and FTX US. Ten percent of these claims have been approved. Additionally, 2,300 non-customer claims worth $65 billion, including those from Genesis, Celsius, and Voyager, have been lodged.

FTX assured users that the account freeze was a precautionary measure and has since bolstered security measures in response to the incident.

This development comes in the wake of prior issues with the claims portal. In late August, FTX temporarily suspended accounts of users who accessed the claims portal following the cybersecurity attack on Kroll. Nevertheless, users were still able to submit proof-of-claims through Kroll's online customer form and by mail.

It's worth noting that the United States Bankruptcy Court for the District of Delaware has granted approval for the sale of FTX's digital assets. Judge John Dorsey's ruling on September 13 permits FTX to sell assets in weekly batches with specific conditions, starting with a $50 million limit followed by subsequent weeks set at $100 million. However, FTX is prohibited from selling its Bitcoin and "certain insider-affiliated tokens" without a separate decision following a 10-day notice to the relevant parties and the U.S. trustee.

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