Celsius Creditors Face Phishing Scams as Bankruptcy Nears Completion
Summary:
As the final phases of Celsius Network's bankruptcy proceedings arrive, creditors are experiencing an increased number of phishing attacks. Fraudsters posing as Stretto, the bankruptcy services platform for Celsius, are utilizing deceptive emails and faulty links to scam users. The phishing efforts have been reportedly linked to previous data breaches at Celsius, and experts advise users to be cautious and double-check all related email communications and links. Celsius, which halted withdrawals after its bankruptcy filing, is due to seek final court approval for its restructuring plan on October 2nd.
As the final stages of the bankruptcy proceedings for the defunct crypto lender Celsius Network ensue, creditors are once again falling prey to a fresh surge of phishing scams. Over the past week, a rise in such deceptive practices has been observed on various social media platforms, with fraudsters masquerading as Stretto, the bankruptcy services platform appointed for representing Celsius and its creditors. One instance involved a user receiving three illegitimate emails on 18th September, purportedly from Celsius, while others have identified fraudulent emails embedded with harmful links imitating Stretto, the claims agent supervising the bankruptcy case.
The deceptive site, exhibiting a slight modification in the original URL, prompts users to connect their wallet, thus enabling the fraudsters to siphon off the crypto assets. A business manager and analyst has noted the likelihood of an escalation in phishing attacks as the bankruptcy proceedings of Celsius near completion. His advice is to remain vigilant and verify the links thoroughly.
Celsius had obtained permission in mid-August to dispatch ballots to its clients for a vote on a suggested settlement plan, a situation that scammers have exploited to intensify their phishing activities around the voting deadline. Simon Dixon, the CEO and co-founder of BnkToTheFuture, an online investment platform, stated that the deadline for voting was 18th September, with the report due on 20th September and a confirmation hearing scheduled for 29th September. In pursuing final court approval for its revamp plan, Celsius has set its sights on 2nd October.
It appears that the phishing efforts can be traced back to previous data breaches, such as the April 2021 intrusion of the Celsius' email server causing user information leakage which subsequently led to malicious emails being sent to those individuals. The hard-pressed crypto lender confessed to another data breach in the third-party system in July 2022, spurring a further wave of phishing attacks. Since the halting of withdrawals by Celsius in June 2022 following the breakdown of the Terra/Luna ecosystem, customers have been eagerly waiting for financial reprisal. The crypto lender sought bankruptcy protection in the subsequent month.
Published At
9/20/2023 5:45:24 AM
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