---
title: "FTX, BlockFi Customers Let Down Once Again Due to Kroll Data Breach"
url: https://diffcoin.com/ftx-blockfi-customers-let-down-once-again-due-to-kroll-data-breach/
description: "Amid bankruptcy proceedings, FTX reveals a data breach via its claims agent, Kroll, leading to the exposure of specific customer data."
published: 2023-08-25
updated: 2023-08-25
author: "Mila"
site: "Diffcoin"
---

# FTX, BlockFi Customers Let Down Once Again Due to Kroll Data Breach

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The cryptocurrency market faced another challenge on August 25 as FTX [reported](https://twitter.com/FTX_Official/status/1694899217326608611?s=20) on Twitter that a data breach through its bankruptcy case claims agent, Kroll. The announcement clarified that the breach resulted in the exposure of non-sensitive customer data linked to its ongoing bankruptcy case.

> “The incident occurred at Kroll, and Kroll is notifying affected individuals directly with measures that customers can take to protect themselves. FTX account passwords were not maintained by Kroll, and FTX’s own systems were not affected..”

Many on Twitter believed it could have been from a dubious email sent as a phishing scam, as well as traditional methods of data breaches.

> So this explains why I got 15 of these today [pic.twitter.com/1Zq3kA2VZk](https://t.co/1Zq3kA2VZk)
> 
> — Rise🍉 (@RiseXBT) [August 25, 2023](https://twitter.com/RiseXBT/status/1694908383462334923?ref_src=twsrc%5Etfw)

In the aftermath of this revelation, Kroll has assumed responsibility, actively reaching out to the impacted individuals. They are being guided on possible protective measures to guard against any unforeseen consequences of the breach.

BlockFi customers were also affected by Kroll’s data breach, [tweeting](https://twitter.com/BlockFi/status/1694844414294704547) that a bad actor was able to breach Kroll’s data for “certain BlockFi client data:”

> “To be clear: BlockFi’s internal system and client funds were not impacted.”

In order to gain better control on bankruptcy proceedings, FTX has filed to enter into an asset supervision with Galaxy Digital. Under the guidance of crypto veteran Mike Novogratz, Galaxy Digital will assist FTX in its sales, staking, and hedging ventures as Kroll and FTX CEO John J. Ray III navigate returning customer debt of up to $8 billion.

But as the situation unfolds, there’s more to be concerned about.

The data breach included name, phone number, address and FTX holdings, in what Kroll is calling “non-sensitive customer data.” It may seem innocuous at face value, but it could reveal the far-reaching implications of even basic data leaks.

What might be dismissed as “non-sensitive” in traditional contexts can, in the crypto realm, ripple out to impact individual users, exchange operations, and the larger trajectory of the industry itself.

> Per email I got from Kroll attacker got everything including physical address and balances… Kroll deserves to go under for this
> 
> — voyta.eth (@0xVoyta) [August 25, 2023](https://twitter.com/0xVoyta/status/1694964982830473396?ref_src=twsrc%5Etfw)

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