A class action lawsuit has been filed against financial company and FTX victim refund handler Kroll. Creditors alleged that the 2023 data breaches caused personal information to be leaked and exposed them to phishing attacks.
That’s what the lawsuit was Submit Tuesday, at a U.S. court in the Western District of Austin, Texas, by Attorney Hall representing FTX client Jacob Repko and other affected parties.
According to court documents, the violation occurred on or around August 19, 2023. This is when an unauthorized third party obtains a mobile number belonging to a Kroll employee.
After obtaining the contact, the hackers used it to infiltrate Kroll’s cloud-based system and obtain a file containing sensitive receivable data such as customer names, home addresses, email addresses, and balances for accounts on the fallen crypto trading platform.
Kroll issues a notification of a data breach
Kroll confirmed a violation of the notification to creditors and claimed that the FTX password and digital assets were not infringed.
“Attacks could use this information further in scams, for example, by sending phishing emails to provide sensitive personal information,” Kroll said.
The company has not affected other accounts or systems; FTX Assets It was not affected.
However, Hall’s lawyers allege that the violation exposed the creditors to fraudulent emails and direct financial losses. Lebco, the lead plaintiff, told the court that he lost 1.9 ETH in July 2025 after the phishing attack diverted funds that he was trying to move to his digital wallet.
He also said there are operational issues with FTX’s customer billing portal. According to Repko, he repeatedly switches the status of your customer (KYC) between “Validation” and “On Hold/Unverified”, preventing you from uploading the tax forms needed for distribution.
According to the plaintiff, he was unable to resolve the issue even after multiple attempts and writing numerous support emails.
“The FTX Portal Gate’s tax format is uploaded behind the “KYC Verification,” so the plaintiff is unable to complete the final assumptions. Under confirmed plan and trust communication, if tax forms are not uploaded in a timely manner, the claim may be deleted or confiscated,” the application read.
Daily phishing complaints from creditors
According to Thursday’s X post FTX Creditor And activist Sunil Kabli, creditors, receive fraudulent emails almost every day. Kavuri shared one message she received with the name embedded in the message, along with several phishing attempts, starting from August 14th, just like last Sunday.
FTX creditors now receive scam emails every day impersonating FTX, Bahamas. I just received it a few hours ago
Includes full name
Nicholas filed a class action lawsuit over Kroll allegedly data breach https://t.co/kilxhygv90 pic.twitter.com/gcpen2pu1i
-sunil (ftx creditor champion) (@sunil_trades) August 21, 2025
Other users replied that they joined Kavuri on an incident in their own experience with phishing attempts and received similar fraudulent messages.
Class Actions require Kroll to make systematic changes, including systematic changes to the way creditor information is processed, such as including multi-channel notifications via both email and physical email, status change characters with mandatory treatment windows, and the option for creditors to manually upload tax forms without a KYC gate.
“This is a service case. After a wave of known security incidents and spoofing, we cannot execute deadlines via email only, or provide mailed confirmations or manual fallbacks,’ I wrote it Nicholas Hall, the plaintiff’s chief lawyer, at a press conference.
Hall also said eligible participants could receive monetary compensation in response to court decisions, and the case could enforce operational changes at Kroll. His company, Attorney Hall, also runs the troubling Exchange billing website, providing assistance to creditors who manage the claims.
Look where it counts. Advertise with Cryptopolitan research and reach Crypto’s most keen investors and builders.
