Bankrupt cryptocurrency exchange FTX has reinstated its customer complaints portal with stricter security protocols, which was previously closed due to a cyberattack. Plaintiffs can now continue to bring claims for assets they held in the stock before it became insolvent.
On September 16, FTX made a statement on X (formerly Twitter), confirming that none of its systems were affected by the cyber breach involving its designated bankruptcy claims agent, Kroll.
FTX provided the following update on the recent Kroll cybersecurity incident. Claimants can now resume activities on our platform: https://t.co/DkYi2hDLbI. pic.twitter.com/Nfob4QQxjv
-FTX (@FTX_Official) September 16, 2023
The breach allegedly exposed non-sensitive customer data of specific claimants. FTX has assured that passwords and account funds were not affected.
FTX stated that account holders of the now-defunct crypto exchange can now access their accounts and continue the process of claiming the digital assets they held on the exchange before it filed for bankruptcy in November 2022.
Specifically, the claims portal is available to people who had accounts at FTX, FTX US, Blockfolio, FTX EU, FTX Japan, and Liquid.
On September 11, Cointelegraph reported that approximately 36,075 customer claims, worth $16 billion have been brought against FTX and FTX US, and 10% of them have been agreed upon.
It was also noted that 2,300 non-customer claims, worth $65 billion, have been filed against the entity, including those from Genesis, Celsius and Voyager.
FTX stated that freezing the accounts was a precautionary measure and that additional security measures have been implemented.
No FTX systems were affected by the Kroll incident and the account freeze was a precautionary measure.
This comes after numerous reports of issues with the claims portal in recent times.
On August 27, FTX declared a temporary suspension of accounts for affected users who accessed its complaints portal after the cybersecurity attack against Kroll was initially discovered.
However, users can still submit a proof of claim through Kroll's online customer form and by mail.
Related: FTX complaints portal becomes unavailable shortly after launch
The customer complaints portal was launched on July 11, but went offline for unknown reasons after just one hour.
In related news, the Delaware Bankruptcy Court recently approved the sale of FTX's digital assets.
On September 13, Judge John Dorsey issued a ruling allowing FTX to sell assets in weekly lots. with strict conditions, through an investment advisor. The initial week will be capped at $50 million, followed by $100 million in subsequent weeks.
However, FTX is currently prohibited from selling its Bitcoin (btc), Ethereum (ETH) and "certain insider-affiliated tokens." Any potential sale of these assets requires a separate decision by FTX, following 10 days notice to the committees and the US Trustee.
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