FTX’s creditors are facing phishing attacks amidst
the ongoing legal turmoil surrounding the collapse of the cryptocurrency
exchange. These fraudulent emails promise expedited withdrawals for assets
locked following the exchange’s insolvency.
According to a report by Cointelegraph, these
deceptive emails encourage creditors to transfer their crypto holdings to
specified wallets, bypassing the protracted waiting period and the ongoing
legal complexities of the bankruptcy proceedings.
Additionally, the fraudulent emails deceive
creditors, stating that as “priority clients”, they can expedite
their crypto asset withdrawal process directly from the FTX platform. These
malicious actions have prompted advocates for FTX creditors to issue a warning
against clicking on any suspicious links.
Notably, this isn’t the first time FTX’s creditors
have been subjected to phishing schemes. In August, the exchange confirmed a
security breach involving Kroll, its bankruptcy claims agent, which compromised
the personal information of many customers.
These attacks occur when FTX has proposed a resolution that could enable users to recover approximately 90% of their assets
starting next year. FTX clients have recently reported receiving deceptive
emails that falsely claim to be sent by FTX entities, including FTX Trading,
West Realm Shires Services, and FTX EU.
One example of such an email, as quoted by
Cointelegraph, reads: “We are excited to offer the valued priority clients
of FTX Trading Ltd., West Realm Shires Services Inc., and FTX EU Ltd., a
special opportunity starting today, Oct. 20, 2023. As a priority client, you
can now undergo the withdrawal process for your assets on the FTX platform and
deposit them directly into your wallet, eliminating any waiting period and
court outcomes.”
Meanwhile, new evidence reveals that Sam Bankman-Fried (SBF) and his associates donated a staggering $50 million during
the 2022 election to politically active nonprofit groups that keep their
donors’ names confidential, CNBC reported. These groups have links to prominent
Senate leaders, such as Mitch McConnell and Chuck Schumer, among others.
Sam Bankman-Fried’s ‘Dark Money’ Donations
SBF, his cryptocurrency exchange FTX, and at least
two former colleagues were major contributors to nonprofit organizations
aligned with influential senators from both political parties. These
organizations, commonly known as “dark money” groups, operate discreetly
and do not disclose the…
