In the turbulent aftermath of the FTX exchange closure, users grapple with stubborn issues that hold fast their capital within the platform confines. A new wave of phishing attacks has surfaced, victimizing former FTX clients. These attacks exploit the registered email addresses associated with the now-defunct exchange.
An email was distributed to several FTX creditors this week, suggesting they are authorized to begin withdrawing digital assets, primarily the USDC stablecoin, from their FTX account. However, there is a concerning clause that withdrawals may require 90 days or more to process once approved. The email misleadingly ensures, “FTX will expedite withdrawals while adhering to security protocols.” It’s crucial to remember that this promise is part of the phishing scam.
This scam appearance is ominously timed, following closely behind Kroll’s SIM-swapping attack. Kroll, the claims agent responsible for managing the bankruptcy proceedings of FTX, suffered data exposure. Personal client information, such as account balances, contact numbers, and residential addresses, was compromised. Fortunately, sensitive data like crypto account passwords were left untouched.
Despite the data breach’s limited reach, FTX urged customers to heighten their vigilance against fraudulent activities, particularly attempts to impersonate parties involved in the bankruptcy proceedings. Preemptively, FTX temporarily froze the accounts affected on its claims portal. Through a SIM swapping scam, fraudsters seize control over the victim’s mobile carriers, gaining unauthorized access to valuable data, compromising passwords, and cryptocurrencies.
Presently, FTX is working towards a resolution that satisfies all parties. However, the ongoing legal fees associated with bankruptcy proceedings, reportedly around $1.5 million per day, are causing tension. These escalating costs are a burden to creditors who fear these expenses will likely impact their future payouts.
Additionally, this month, claimants who were left in the dark regarding potential plans to relaunch FTX voiced their frustration. The Committee’s lawyers express their disapproval concerning the lack of engagement from the Debtors, highlighting the crucial nature of these pending issues. As the situation stands, it showcases the potential pitfalls users face in the crypto realm. While this platform benefits users with its revolutionary approach to transactions and wealth acquisition, it also exposes users to unforeseen risks such as phishing and SIM swapping scams.
Source: Cryptonews
