FTX, a now-defunct crypto exchange, warned its former users about a breach in security at Kroll, an independent provider of risk and financial advisory solutions.

Kroll is the claims agent in the ongoing FTX bankruptcy case.

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The incident impacted non-sensitive customer data since account passwords were held in FTX systems, and they were not affected.

On August 25th, FTX advised users to be cautious and reassured the former customers that:

The incident occurred at Kroll, and Kroll is notifying affected individuals directly with measures that customers can take to protect themselves. FTX account passwords were not maintained by Kroll, and FTX’s own systems were not affected.

The message stated that the cybersecurity incident has quickly been contained and resolved, and the FTX Debtors are keeping an eye on the situation.

Kroll reportedly sent out emails to affected customers that an unauthorized party gained access to files on the company’s cloud-based systems.

Additionally, FTX cautioned users to expect phishing emails or similar scams impersonating the parties in the bankruptcy.

And currently, crypto enthusiasts on X (formerly Twitter) are reporting instances where they received fraudulent emails. The letters encourage users to withdraw their funds to “an external ERC-20 wallet” through a provided link.

FTX collapsed in November 2022 and caused immense damage to the market. On top of that, the exchange was allegedly hacked shortly after declaring bankruptcy. Reportedly, close to $500m worth of assets have been stolen through illegal transfers.

The company’s founder and CEO, Sam Bankman-Fried, was arrested late last year. He’s been charged with fraud and similar offenses but claimed to be not guilty, with court dates set for October and March.