The pain brought about by SBF and the collapse of FTX does not seem to come to an end. The crypto market has faced surges and a fair share of risks in investing in digital currencies. Among the events that have shaken the crypto market include the collapse of FTX.
The popular crypto exchange has been under the public eye following the arrest of Sam Bankman-Fried on allegations of using investors’ funds for personal gain. The collapse of FTX has also created an environment of phishing scams that have left FTX creditors at risk of losing their digital funds.
These creditors await the ruling on the FTX case implosion that started in November 2022. As SBF remains on trial, phishing withdrawal scams are on the rise, and investors should apply caution and be warned of the potential risk currently underplay.
FTX creditors warned of phishing scams
Activist Sunil has warned the crypto community, especially FTX creditors, about the phishing scams that have been denied as legitimate withdrawals. According to his warning, it is essential to note that the FTX withdrawals are still not functional. Following the report, the creditors have been receiving a series of emails encouraging them to make withdrawals.
These emails to creditors address instant withdrawal services that are really phishing scams. Part of the message in the emails states that if the guidelines are followed, the creditors won’t have to endure the waiting period or the court ruling.
The collapsed exchange had been opting to reimburse its creditors in fiat rather than digital assets. This also follows the court’s order on batch liquidation of the funds in order to minimize impact. Current administrators of FTX are hoping to stake and place careful trades in order to assist the platform in trying to liquidate $3 billion in crypto holding. The major goal of this is to repay the creditors who funded the exchange.
Based on sentiments from legal experts representing the collapsed exchange, the hedged Ethereum (ETH) as well as Bitcoin (BTC) Tokens will insulate and limit downside risk amid the crypto asset liquidation. Simply put, the platform is to reimburse creditors using the low-risk returns from its ETH and BTC holdings.
Sentiments on the phishing scams and FTX
The reimbursement topic has been headlined by the crypto community, commenting it has been tumultuous. This comes in from the time the customer claims portal collapsed after briefly going live back in July.
Cybercrimes like phishing have been on the rise ever since the inception of cryptocurrencies. The recent malicious activities in the FTX withdrawals have been noted by the crypto community, and creditors have been warned not to give in. It is clear to note all FTX withdrawals are suspended indefinitely. This is due to the technical complications brought about by the legal case against the crypto exchange.
It is also essential to note exchange has been transparent in its endeavors to resolve the challenges brought by the court trial. However, this has left cyber criminals with a perfect entry into phishing scams. As such, it’s vital for crypto investors to take caution and not be devices for giving their personal information.
These scams come in the form of malicious downloads, social engineering, and fake websites that might dupe FTX’s creditors into sharing their details. It’s important to secure accounts through the use of Two-Factor Authentication (2FA) or generally avoiding emails on withdrawal requests amid the FTX court hearing.
Additionally, it’s essential to stay Informed of the latest proceedings over the court trial and steps taken to reimburse creditors. Exercising a degree of caution and securing accounts will go a long way in assisting any FTX investors to stay alert and avoid falling victim to phishing scams.
