Singaporean Police have warned that scammers are targeting investors still hurting from the losses brought on by the recent bankruptcy of cryptocurrency exchange FTX.
According to local news outlet Channel News Asia, the authorities issued a warning to the public about a website that requests FTX users’ login information and purports to be housed by the US Department of Justice. Targeting local investors concerned by the FTX collapse, the unnamed website asserts that clients “would be able to withdraw their assets after paying legal expenses.”
Retail investors are in a panic as a result of the collapse of FTX, the second-largest cryptocurrency exchange in the world, as their assets have been frozen. A number of financial organizations, including the Singapore investment giant Temasek, had investments in FTX that were wiped out totalling hundreds of millions of dollars.
The police also issued a warning about a second scam involving cryptocurrency investments, in which scammers use phoney articles to advertise auto-trading services.
Police warn against fake articles on cryptocurrency
According to the police, the fake articles use political leaders like Speaker of the House Tan Chuan-Jin and Senior Minister Tharman Shanmugaratnam to purportedly endorse bitcoin auto-trading platforms. They are written to look like news sources like CNA.
There would be accusations in these stories that both politicians “endorse algorithmic cryptocurrency auto-trading schemes, including Immediate Edge, claiming that such programs create significant profits.”
These false articles are frequently sponsored online advertisements that tempt consumers to click on internal links that take them to a different website and promote high-return cryptocurrency or other financial product investments. A call marketing the investment trading program will be made to users who give their contact information on the website. Anyone who decides to invest in the scheme will be required to send money to an international bank account or pay with a credit card.
Singapore police clarify that no government is backing Bitcoin
The Singapore Police Force further clarified that no government has issued or is backing Bitcoin or any other cryptocurrency. additionally asked the general public to confirm the veracity of such publications before sending any money or disclosing any personal information.
When someone clicks on a link within the article, they will eventually be taken to a different website, offering investments through the trading of cryptocurrency or other financial products. Those who provided their contact details on the website would usually receive a call from someone from the scheme, who would pressure the victims to invest.
Members of the public were advised to follow crime prevention measures such as asking questions to understand investment opportunities and confirm the credentials of the company and its representatives.
In June, the police issued a similar advisory on fake online articles claiming that Prime Minister Lee Hsien Loong purportedly endorsed cryptocurrency auto-trading programs.
