2023-10-23 11:29 |
FTX users have been placed on high alert as a deceptive priority withdrawal scam targeting them has recently come to light.
On Friday, Sunil, a prominent advocate for FTX creditors, took to the X platform to warn account holders about this phishing scheme and urged them to exercise caution when encountering suspicious emails.
“FTX Creditors please beware of phishing scams. Please do not click on any links Below is a scam email received by FTX creditors Creditors cannot withdraw currently.” Warned Sunil, sharing a screenshot of a sample email.
Notably, following Sunil’s tweet, multiple users reported receiving “Phishing emails” seemingly sent by entities like FTX Trading, West Realm Shires Services, and FTX EU. These emails falsely promise FTX creditors an exclusive opportunity to make immediate asset withdrawals, circumventing the usual waiting periods and legal processes.
Notably, these deceptive emails are preying on FTX users who may be eager to withdraw their assets amid ongoing legal disputes involving Sam Bankman-Fried, the former CEO of the exchange. However, at press time, FTX was yet to issue any official warnings or statements regarding this scam.
That said, the latest incident comes just days after FTX announced the resolution of customer property disputes. However, this resolution is still pending approval from a bankruptcy court, and it is anticipated to provide substantial relief to FTX’s global customer base, with customers potentially recovering over 90% of the distributable value.
The latest scam is a grim reminder of the persistent threats facing cryptocurrency exchanges. In August, FTX reported a breach that compromised customer data. This breach was attributed to a hack of Kroll, a third-party agent managing creditor claims on behalf of bankrupt companies. Fortunately, crypto account passwords and sensitive data remained unscathed, but customers were urged to remain vigilant against scammers impersonating parties involved in the bankruptcy proceedings.
It shall also be recalled that back to January, FTX faced another major security challenge when approximately $415 million in cryptocurrency was stolen in a series of hacks.
That said, the cryptocurrency industry remains a lucrative target for scammers and hackers, underscoring the importance of robust security measures and constant vigilance for both exchanges and their users.
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