FTX Creditors Sue Kroll Over Data Breach and Mishandled Claims - Security Crisis Deepens

Another day, another crypto custodian learns the hard way that bankruptcy doesn't excuse sloppy security.

FTX's creditors just filed suit against claims agent Kroll—alleging gross negligence in handling sensitive claimant data. The lawsuit claims Kroll failed to implement basic security protocols, exposing personal information that should've been locked down tighter than a cold wallet.

Here's the kicker: while Kroll was supposedly managing billions in claims, they couldn't even manage basic data hygiene. Names, addresses, claim amounts—all potentially exposed. Because nothing says 'professional claims administration' like leaving the digital vault wide open.

This isn't just a breach—it's a masterclass in how not to handle a bankruptcy proceeding. Creditors already waiting for scraps now get to worry about identity theft. Because in crypto, even the failures have failure layers.

Maybe next time hire someone who understands that 'private key' doesn't mean 'suggestion'.