FTX reactivates customer claim portal after resolving cybersecurity breach News ▸ US ▸ Bankruptcy
FTX reactivates customer claim portal after resolving cybersecurity breach
The exchange stated that no critical systems were compromised in the cyberattack, which targeted its designated bankruptcy claims agent, Kroll.
2 min read
Updated: Sep. 17, 2023 at 1:50 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Defunct cryptocurrency exchange FTX announced the reopening of its customer claims portal, which was abruptly shut down due to a cybersecurity attack that compromised non-sensitive data.
The exchange stated that no critical systems were compromised in the cyberattack, which targeted its designated bankruptcy claims agent Kroll. The breach reportedly revealed non-sensitive data of certain claimants, but the exchange emphasized that crucial details like account passwords and funds remain secure.
As an immediate response to the Kroll security incident, FTX temporarily suspended account activities. Despite the portal’s suspension, affected users were provided an alternative to submit their claims, either via Kroll’s online form or through conventional mail.
The exchange added that it has rolled out further precautionary measures to ensure the safety of its users.
Customer claims
FTX’s official announcement on X (previously known as Twitter) clarified that individuals who held accounts not just with FTX but also with its associated platforms like FTX US, Blockfolio, FTX EU, FTX Japan, and Liquid, can now access their accounts and initiate the claims process for their digital assets.
Based on the data shared in the bankruptcy proceedings, a staggering $16 billion worth of claims from about 36,075 customers have been registered against FTX and FTX US — with only 10% of the claims confirmed for settlements.
Additionally, FTX is facing non-customer claims amounting to $65 billion from entities including Genesis, Celsius, and Voyager.
Court greenlights asset sale
In a separate but related development, FTX has received approval from the United States Bankruptcy Court for the District of Delaware to liquidate its digital assets.
Judge John Dorsey sanctioned FTX’s request to conduct weekly asset sales under strict regulations via an investment adviser. The sales kick off with an initial cap of $50 million, which doubles for the subsequent weeks.
However, notable assets like Bitcoin and Ether, alongside particular insider-associated tokens, have not been greenlit for sale. Any intention to sell these assets demands a special resolution by FTX, which should be preceded by a 10-day notice to the related committees and the U.S. trustee.
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Author 
Assad Jafri
AJ, a passionate journalist since Yemen's 2011 Arab Spring, has honed his skills worldwide for over a decade. Specializing in financial journalism, he now focuses on crypto reporting.
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Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
Ethereum
$3,503.17
Ethereum is a decentralized, open-source blockchain platform that enables the creation of smart contracts and decentralized applications (DApps).
FTX
FTX is a defunct cryptocurrency exchange, currently in bankruptcy proceedings, that was founded by Sam Bankman-Fried and Zixiao “Gary” Wang in May 2019.