Kroll, a financial and risk advisory firm, is facing a class-action lawsuit for allegedly negligent conduct related to a data breach affecting creditors of FTX, BlockFi, and Genesis.
The lawsuit was filed on Tuesday in a US district court by Hall Attorneys on behalf of FTX customer Jacob Repko and other crypto creditors harmed by Kroll’s data breach.
The suit alleges that affected crypto creditors have encountered phishing attacks, a cybercrime where malicious actors aim to obtain sensitive information, due to a data breach that Kroll experienced in August 2023, where cybercriminals accessed personal details of crypto creditors.
The complaint emphasizes that Kroll relied solely on email for outreach. Additionally, it claims that the claims verification process was compromised, resulting in delays and potential loss of funds.
Besides seeking damages, the lawsuit aims to address the communication problems creditors have faced due to Kroll’s singular point of contact.
In a Thursday X post, Sunil Kavuri, a notable FTX creditor, reported that creditors receive phishing emails daily, sharing that he recently got one with his name included in the scam.
In another screenshot, Kavuri displayed that he had received multiple phishing emails from August 14 to August 17.
Another user replied indicating they too have received similar messages.
Nicholas Hall, from Bankruptcy and Complex Litigation at Hall Attorneys, responded to a user, stating that eligible claimants may receive monetary compensation and that operational changes at Kroll could ensue depending on the court decision.
Hall also runs the FTX Claims website to assist FTX creditors with their claims.
Earlier in March, Kroll reportedly suffered another data breach where client invoicing, accounts payable, and email addresses were exposed to malicious actors.
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Third round of FTX reimbursement in September
The third round of reimbursements to FTX creditors is scheduled to begin on Sept. 30, with the payout totaling $1.9 billion.
This payout is expected to exclude foreign creditors, including those from China, Russia, and other restricted regions.
Over $5 billion was disbursed during the second round of reimbursements announced in May.
In February, FTX revealed its intention to distribute $1.2 billion to users with claims up to $50,000.
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