Kroll’s 2023 data breach is haunting the platform again as the FTX creditors have launched a legal battle against it. Just weeks ahead of the third reimbursement, plaintiff Repko and others have taken legal steps to seek compensation and the platform’s systemic updates.
FTX Creditors File Lawsuit Against Kroll
In an X post, attorney Nicholas Hall revealed that he has filed a class action lawsuit on behalf of FTX creditors against Kroll Restructuring Administration. Kroll is managing claims for the bankrupt crypto exchange, and the lawsuit comes on the allegation of the data breach and negligence of the claim administration in the FTX, BlockFi, and Genesis bankruptcy cases.
- Source: X, Nicholas Hall
The lawsuit has been filed, considering the risks and uncertainty the creditors faced while recovering their funds after the FTX collapse. More importantly, the focus is on the August 2023 data breach, when hackers gained access to a Kroll employee’s mobile number, giving them access to the firm’s cloud-based systems.
In the hack, hackers got access to the crucial information of users. It includes customer names, home and email addresses, FTX account balances, and more. Although no FTX password or assets were compromised, the data could lead to phishing attacks.
Moreover, Kroll failed to issue proper communication to creditors and relied only on email-only alerts.
Phishing Attacks Haunt FTX Creditors
Following the breach, FTX creditors received many scam emails, some even impersonating FTX. Community member Sunil shared some of these events, highlighting that the emails had full names of the creditors. One plaintiff, Repko, lost 1.9 ETH in July 2025, linked to one phishing breach.
Warning: Phishing Scam Email
Full name, email addresses of FTX creditors revealed
New or old data leak
1) Do not click on email links
2) Check Sender addresses
3) Go direct to claims portal or official address. Do not click on links in emailsFTX claims:… pic.twitter.com/GK1nrYSpLO
— Sunil (FTX Creditor Champion) (@sunil_trades) August 13, 2025
Even the official social media account for the Joint Official Liquidators of FTX Digital Markets Limited today posted on the rising number of these phishing scams. Overall, the creditors’ lawsuit highlights the unreliable email notification and the systematic flaws in Kroll’s management.
We are aware of an increase in FTX creditors being targeted with phishing emails that look like they are from the Joint Official Liquidators and fraudulent websites designed to look like the FTX Digital Claim Portal in order to trick creditors into providing personal information…
— FTXDigitalMarketsLiquidation Official (@FTX_DMOfficial) August 22, 2025
Other issues include KYC failure, as they face access issues due to the status toggling between ‘Verified’ and ‘Hold.’ The tax-form upload issues also highlight that the creditors fail to submit the required forms.
What’s Next?
With this lawsuit, the plaintiff/ FTX creditors want major systemic changes on the platform, along with compensation. The major changes include the multi-channel notification, manual tax-form upload options (without KYC gating), better security, independent audit of Kroll’s security and claim-handling processes, and more.
Now, if the court rules in favor of creditors, they could receive financial compensation, operational reforms, and more.
Costs you nothing.
Potential outcomes—if the Court certifies the case and later approves a settlement or enters judgment—can include two things:
• Monetary relief for eligible class members (for example, up to $750 or actual damages for California victims, but depends on…— Nicholas Hall (@nicholashall) August 21, 2025
While this is in action, the users are also eyeing the third round of FTX reimbursements, totaling $1.9 billion. These reimbursements will take place on September 30, 2025, and will be distributed through BitGo, Kraken, and Payoneer.
Experts also warn that scammers may try to exploit users ahead of the payout schedule, so caution is needed.
Frequently Asked Questions (FAQs)
Hackers gained access to customer names, emails, addresses, and FTC account balances.
Many creditors received phishing emails, and some even became victims of the scam led by the breach.
The third round of reimbursement, totaling $1.9 billion, will take place on September 30, 2025.
Pooja Khardia
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Source: https://coingape.com/trending/ftx-creditors-launch-legal-battle-against-kroll-for-mishandling-claims/