- FTX creditors were warned about phishing scams by the ecosystem activist.
- The warning follows a fake email sent to the exchange’s creditors, promising priority services with no waiting time.
- The activist explains that creditors cannot currently make withdrawals.
- Victims could suffer if bad actors access their wallet and install a scanner to steal funds.
FTX’s creditors remain keen as they await release after being exposed to the exchange following its implosion in November 2022. Meanwhile, the trading platform’s founder, Sam Bankman-Fried (SBF), remains on trial , witnesses revealing theft and unscrupulous use of customers. funds.
FTX creditors warned of possible phishing scams
FTX creditors have been warned of possible phishing scams, with activist Sunil saying withdrawals are still not functional. According to the report, creditors received emails promising to give them priority for withdrawals. The email also announces instant withdrawals, saying those who follow the guidelines will not have to endure “the waiting period and legal outcomes.”
FTX creditors, beware of phishing scams
Please do not click on any links
Below is a fraudulent email received by FTX creditors
Creditors cannot currently withdraw pic.twitter.com/cNM2jRJXPt
– Sunil (FTX Creditor Champion) (@sunil_trades) October 20, 2023
The exchange has been exploring options to return creditors’ funds in fiat currencies rather than crypto, with the court orders batch liquidations to minimize impact. Current FTX administrators hope that careful staking and trading can help the platform liquidate $3 billion in crypto securities to repay customers.
According to legal experts representing FTX, hedging Bitcoin (BTC) and Ethereum (ETH) will allow the exchange to limit downside risks when liquidating its crypto assets. The exchange aims to generate low-risk returns on BTC and ETH holdings.
The topic of customer refunds has been a rather tumultuous one, defined by various issues dating back to July, when the customer complaints portal collapsed shortly after going live. The network cited an overload.
Temporarily down due to overload
– Sunil (FTX Creditor Champion) (@sunil_trades) July 11, 2023
The FXStreet team has reached out to the FTX customer support team for comment.
Prevalence of phishing
In the meantime, Phishing has become a heated topic in the cryptocurrency industry, with bad actors using links to trick unsuspecting victims. Over the past few months, numerous attacks against different ecosystems have been reported.
As phishing attacks become more and more sophisticated, users must remain vigilant, especially when it comes to URLs. Particularly when it comes to financial transactions or sensitive information, relying on trusted sources becomes essential, with an emphasis on never clicking on suspicious links.
For an overview of phishing scams reported in recent months, visit here.