FTX creditors sue Kroll for mishandling claims, exposing sensitive data

FTX creditors sue Kroll for mishandling claims, exposing sensitive data

FTX creditors have launched a class action lawsuit against Kroll Restructuring Administration, the firm managing claims for the bankrupt crypto exchange.
The suit, filed on Aug. 20 by US-based Hall Attorneys, alleged that Kroll’s handling of claims for FTX, BlockFi, and Genesis customers caused financial harm and exposed sensitive information to cybercriminals.
According to the lawsuit, Kroll knew emails were unsafe, as it consistently warned about phishing risks after it suffered a data breach incident in August 2023.
At the time, an unauthorized party gained access to a Kroll employee’s mobile number, which allowed entry into Kroll’s systems and exposure of creditor data, including names, addresses, email contacts, and some FTX account balances.
However, the firm reportedly continued to send critical notices solely via email, leaving claimants vulnerable to scams and phishing attacks.
Notably, Sunil Kavuri, a prominent FTX creditor, confirmed that phishing emails have become a

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