Bankrupt cryptocurrency exchange FTX has restored its customer claims portal, which was previously shut down due to a cyberattack. Claimants can now continue to submit claims for assets they held on the exchange before it went bankrupt.
On September 16, FTX issued a statement on X (formerly Twitter) confirming that none of its systems had been affected by the cyber breach involving Kroll, its designated bankruptcy claims agent.
FTX has provided the following update regarding the recent Kroll cybersecurity incident. Claimants can now resume activity on our platform: https://t.co/DkYi2hDLbI. pic.twitter.com/Nfob4QQxjv
— FTX (@FTX_Official) September 16, 2023
It announced that account holders at the now-defunct cryptocurrency exchange can now access their accounts and initiate bankruptcy claims proceedings against the digital assets they held on the exchange before it declared bankruptcy in November 2022.
As part of the company’s reorganization, the claims portal allows customers with FTX, FTX US, Blockfolio, FTX EU, FTX Japan and Liquid accounts to access their account information and submit claims.
On September 11, Cointelegraph reported that approximately 36,075 customer claims worth $16 billion had been filed against FTX and FTX US, 10% of which had been agreed.
RELATED: FTX claims portal becomes unavailable shortly after going live
It was further noted that the entity has received 2,300 non-customer claims, including claims from Genesis, Celsius and Voyager.
FTX claimed that the account freeze was a precautionary measure and said it had taken extra security measures.
The FTX system was not affected by the Kroll incident and the account freeze was a precautionary measure.
There have been numerous reports of issues with the claims portal.
On August 27, after the disclosure of a cybersecurity attack against Kroll, FTX announced that it was temporarily suspending the accounts of affected users who accessed its claims portal.
However, users can still submit proof of claim via Kroll’s online customer form and by mail.
The breach allegedly exposed non-sensitive customer data of certain claimants. At the time, FTX said it was monitoring the situation to ensure account passwords, systems and funds were not affected.
The customer claims portal was launched on July 11 but went offline just an hour later for unknown reasons.
In related news, the Delaware Bankruptcy Court has approved the sale of FTX digital assets.
On September 13, Judge John Dorsey issued a ruling allowing FTX to sell assets in weekly batches through investment advisers under strict conditions. The limit is $50 million in the first week and $100 million in subsequent weeks.
However, FTX is currently prohibited from selling its Bitcoin (BTC), Ethereum (ETH) and “certain insider-related tokens.” Any potential sale of these assets would require a separate decision by FTX upon 10 days’ notice to the Commission and the U.S. Trustee.
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