BlockFi, FTX downplay data breach involving claims administration platform Kroll

The breach Thursday calls into question the security measures employed by the third-party vendor


John Hanson Pye/Shutterstock, modified by Blockworks


Embattled crypto firms BlockFi and FTX said they have both been indirectly affected by a cybersecurity breach involving third-party claims administration platform Kroll. 

BlockFi issued a statement on Wednesday attempting to assuage concerns that its internal systems and funds had not been affected by the breach that had occurred Tuesday. Kroll has reportedly confirmed unauthorized access to certain client data stored on its system.

Kroll is currently serving as the claims agent in the bankruptcy cases of both companies, facilitating the submission and administration of debtor claims through online portals

“To be clear, BlockFi’s internal systems and client funds were not impacted,” BlockFi said in its statement. “We understand this is frustrating. In the spirit of transparency, we wanted to make our clients aware of this incident before bad actors could utilize this information to clients’ detriment.”

Defunct crypto exchange FTX announced a similar incident, which it said had occurred on Kroll’s platform and that its own system and account passwords had also not been affected.

In a post on X, formerly Twitter, FTX said non-sensitive customer data of claimants had been compromised. Kroll has since taken measures to contain and remediate the incident, per the statement.

“Kroll is notifying affected individuals directly with measures that customers can take to protect themselves,” FTX said.

FTX collapsed late last year following allegations it had misappropriated customer funds through sister trading firm Alameda Research. BlockFi simultaneously fell victim to a liquidity crunch following its exposure to FTX through loans made to Alameda as well as funds trapped on FTX.

BlockFi is attempting to foil efforts by FTX, as well as former Singapore-based hedge fund firm Three Arrows Capital, over claims to billions of dollars they say are owed to them by the former crypto lender.

Both companies advised clients Thursday to remain vigilant for attempted fraud, phishing attempts and scam emails impersonating parties connected to the security breaches.

BlockFi also warned of an expected uptick in spam phone calls and phishing attempts against other bankrupt crypto firms in the weeks and months ahead.

FTX and BlockFi said they were monitoring the situation. Blockworks attempted to contact Kroll but has so far received no response.

Don’t miss the next big story – join our free daily newsletter.


Upcoming Events

Hilton Metropole | 225 Edgware Rd, London

Mon - Wed, March 18 - 20, 2024

Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience: Attend expert-led panel discussions and fireside chats Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts.

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Research report - cover graphics (1).jpg


In this report, we dive into crypto private market data to gather insights on where the future of the industry is headed. Despite a notable downturn in private raises, capital continues to infuse promising projects that aim to transform payments, banking, consumer experiences, community, and more, with 2023 being the fourth-largest year for crypto venture capital.


BUZZ holds shares of Coinbase, Robinhood and MicroStrategy


Opinion: Even though I didn’t pay for my “Diamond Hands” burger with BTC, don’t let that fool you into thinking that crypto’s development is futile


The results mark “a major positive inflection point,” one analyst says, as the exchange carries net income momentum into a crypto rally


While the slate of 10 US spot bitcoin funds have tallied $4.6 billion of net inflows thus far, half of the field is lagging the leaders


Trading volumes totalled $154 billion in Q4, including $125 billion in institutional volume


DeFi on Bitcoin is all the rage right now and Stacks is positioned to benefit