FTX creditors face challenges recovering funds, amid lawsuits over data breaches and claim management issues.
The class action lawsuit targets Kroll for data leaks and the claim management difficulties posed by the email system, creating challenges and risks for FTX creditors.
MAIN CONTENT
Data leaks expose FTX creditors' personal information, increasing the risk of fraud.
Kroll's email-based request processing system causes delays and loss of rights.
The lawsuit demands changes to management processes and notifications to protect creditors.
What security risks does the lawsuit allege against FTX creditors?
The case is represented by Hall Attorneys for FTX client Jacob Repko along with other creditors reflecting the data leak that occurred in August 2023. Kroll confirmed that no passwords or digital assets were affected, but the exposure of personal information increases the risk of phishing attacks.
Sensitive information being leaked does not directly affect assets but facilitates fraud through email or message impersonation aimed at seizing creditors' assets.
What specific shortcomings does Kroll's request processing system have?
The system relies only on email for notifications and managing complaint files, leading to severe problems such as missed deadlines, interruptions due to attacked verification processes, and even loss of creditors' money.
Mr. Repko, who lost 1.9 ETH after the leak, encountered many barriers when filing a claim, such as KYC verification errors and difficulties uploading tax forms, which could lead to his rights being denied.
Specific issues arising include:
Missed notification deadlines due to unstable email.
Delays or locked access due to verification processes being attacked.
Lost money in phishing scams following the data leak.
What improvements do creditors propose to increase protection and transparency?
The lawsuit not only seeks damages but also calls for Kroll to implement more effective improvements in claim management and notifications, including diverse communication methods and unrestricted manual verification processes.
Key demands include: multi-channel notifications, clear status update letters with deadlines, stricter address change management, and safety measures when sending emails as well as independent audits.
“After the security incident and wave of impersonation, it is not possible to rely solely on email to enforce deadlines without confirmation via mail or alternative manual solutions.”
– Nicholas Hall, attorney representing the plaintiffs, August 21, 2025
What will be the impact of the court approving the lawsuit?
If the court approves the class action lawsuit and agreements or rulings, eligible creditors may receive financial compensation as well as benefit from systematic operational changes at Kroll.
This does not incur costs for creditors but opens up opportunities for fund recovery and reduces future risks through better control and transparency in the claims resolution process.
What is the latest development regarding the payment to FTX creditors?
FTX will begin distributing the third payment on September 30, 2025, with a total value of $1.9 billion through partners BitGo, Kraken, and Payoneer. This payment round aims to help creditors recover funds after bankruptcy.
However, the disbursement could also lead to an increase in phishing emails impersonating FTX, especially prevalent in the Bahamas. Creditors need to be cautious and only conduct transactions through official channels.
Frequently Asked Questions
How does the FTX data leak affect creditors?
Why does Kroll's email system cause so many problems?
Relying solely on email makes notifications prone to delays, verification errors, leading to loss of creditors' rights.
Will creditors be compensated for losses?
If the court approves, eligible creditors may receive financial compensation related to damages and fraud risks.
When will FTX begin disbursing payments to creditors?
The third payment round is expected to start on September 30, 2025, with a total amount of up to $1.9 billion.
How can creditors avoid scams during this period?
Creditors should only use official channels to contact and be wary of phishing emails or messages impersonating FTX.
Source: https://tintucbitcoin.com/chu-no-ftx-kien-kroll-lo-data/
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