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

article-image

John Hanson Pye/Shutterstock, modified by Blockworks

share

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.


Get the news in your inbox. Explore Blockworks newsletters:

  • Blockworks Daily: The newsletter that helps thousands of investors understand crypto and the markets, by Byron Gilliam.
  • Empire: Start your morning with the top news and analysis to inform your day in crypto.
  • Forward Guidance: Reporting and analysis on the growing intersection of crypto and macroeconomics, policy and finance.
  • 0xResearch: Alpha directly in your inbox. Market highlights, data, degen trade ideas, governance updates, token performance and more.
  • Lightspeed: Built for Solana investors, developers and community members. The latest from one of crypto’s hottest networks.
  • The Drop: For crypto collectors and traders, covering apps, games, memes and more.
  • Supply Shock: Tracking Bitcoin’s rise from internet plaything worth less than a penny to global phenomenon disrupting money as we know it.
Tags

Upcoming Events

Industry City | Brooklyn, NY

TUES - THURS, JUNE 24 - 26, 2025

Permissionless IV serves as the definitive gathering for crypto’s technical founders, developers, and builders to come together and create the future.If you’re ready to shape the future of crypto, Permissionless IV is where it happens.

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

morpho 2 graphic.png

Research

Utilizing a ‘DeFi Mullet’ approach, Coinbase’s Bitcoin-backed loans integration with Morpho demonstrates a powerful blueprint for CEXs to monetize dormant assets by expanding adoption of wrapped products (cbBTC, USDC) while also supporting native and/or preferred DeFi ecosystems (Base) which can further lead to downstream growth in onchain liquidity and increased utilization of the related assets.

article-image

Documents and sources suggest Neon Machine is running out of cash and has laid off nearly all its employees — and struck a deal with the Chinese government to stay afloat

article-image

The network is at a “pivotal juncture,” Blockworks Research’s Marc-Thomas Arjoon said

article-image

Altcoin trade volume has returned to pre-FTX levels, but with a shrinking pool of market leaders

article-image

Solana Foundation’s former head of strategy proposes increasing the disinflation rate

article-image

With much of the bitcoin mining supply chain based in Asia, US-based operations now face higher equipment prices

article-image

Anticipating an economic downturn, venture firms may be less likely to invest