Creditors have fallen prey to a new wave of phishing attacks as Celsius Network’s bankruptcy proceedings approach their final stages, adding to the woes of customers who have been awaiting resolution since the crypto lender halted withdrawals in June 2022. Reports on social media have revealed an alarming surge in phishing attacks, with scammers impersonating Stretto, the bankruptcy services platform for Celsius and its creditors.
Phishing attempts escalate
Over the past week, numerous users have reported receiving phishing emails claiming to be from Celsius, with one user disclosing having received three such emails on September 18. These fraudulent emails often contain malicious links and are designed to trick recipients into revealing sensitive information or downloading malware.
One concerning aspect of this wave of attacks is that scammers have also been impersonating Stretto, the claims agent responsible for managing the bankruptcy case. These fake emails direct recipients to a counterfeit website that closely resembles the legitimate Stretto platform but drops an “s” from the URL. Upon visiting the fake site, victims are prompted to connect their wallets, providing scammers with an opportunity to drain their crypto assets.
Ongoing threats amid bankruptcy proceedings
An analyst and business manager have warned that phishing attacks are likely to escalate as the Celsius bankruptcy proceedings move closer to their conclusion. They advise all affected parties to exercise caution and to thoroughly verify the authenticity of links and communications they receive.
The phishing attacks seem to stem from earlier data breaches involving Celsius Network. In April 2021, the crypto lender experienced a significant email server breach that exposed user details, ultimately leading to a slew of malicious emails targeting those affected. This breach set the stage for future security vulnerabilities.
In July 2022, Celsius Network suffered yet another setback when it was revealed that more customer data had been compromised in a third-party data breach. This breach reignited a fresh wave of phishing attacks, intensifying the challenges faced by the crypto lender and its users.
Key bankruptcy milestones
Celsius Network customers have been eagerly awaiting a resolution since the crypto lender filed for bankruptcy following the collapse of the Terra ecosystem. Here are some key milestones in the bankruptcy proceedings: In mid-August, Celsius was granted authorization to send out ballots to its customers, allowing them to vote on a proposed settlement plan.
The final date for voting was September 18, with a report on the outcome scheduled for September 20.A confirmation hearing is slated for September 29, where the fate of Celsius Network’s restructuring plan will be further discussed. Celsius intends to seek final court approval of its restructuring plan on October 2, which could provide some clarity to creditors and users alike.
Staying vigilant
In light of the persistent phishing threats and the ongoing uncertainty surrounding Celsius Network’s bankruptcy, users are strongly encouraged to remain vigilant. It is crucial to double-check the legitimacy of emails, links, and communication received, especially those related to the bankruptcy proceedings. Verifying the sender’s authenticity and being cautious when prompted to provide personal or financial information can help safeguard against falling victim to such attacks.
