FTX Users Beware: Priority Withdrawal Scam Surfaces Amid Ongoing Legal Disputes
Summary:
FTX users are being targeted by a phishing scam that offers immediate asset withdrawals, bypassing waiting periods and legal proceedings. The scam comes amidst legal disputes involving former FTX CEO, Sam Bankman-Fried. The deceptive emails appear to be sent by FTX Trading Ltd., West Realm Shires Services Inc., and FTX EU Ltd., but are not associated with FTX. Following recent resolution of customer property disputes, FTX users are advised to be vigilant and refrain from clicking on dubious links.
A recent swindle involving false promises of priority withdrawal has targeted users of FTX. Through the social medium X, previously known as Twitter, FTX spokesperson Sunil has issued a warning to FTX clients against this cyber crime, advising them to refrain from clicking any suspicious links. Highlighting the persistent innovation of online fraudsters, Sunil's warning underscores the importance of constant vigilance.
Users of FTX have reportedly received misleading emails, allegedly from FTX Trading Ltd., West Realm Shires Services Inc. and FTX EU Ltd. These emails falsely present an exclusive opportunity for FTX customers to immediately withdraw their assets, circumventing waiting periods and legal processes. The deceptive email reads:
"FTX Trading Ltd., West Realm Shires Services Inc., and FTX EU Ltd. are pleased to provide a unique opportunity to our esteemed priority clients commencing today, Oct. 20, 2023. As a privileged client, you can now facilitate the withdrawal of your assets from the FTX platform and transfer them directly to your wallet, abstaining from any waiting time and court judgments.”
Although this email might appear tempting to users eager to withdraw assets amid legal rows involving Sam Bankman-Fried, former head of the exchange, it's imperative to recognize that the email is part of a scam and is not connected to FTX.
This warning comes on the heels of FTX creditors marking a significant achievement by announcing the resolution of customer property disputes, a significant breakthrough in addressing ongoing legal concerns.
Subject to approval from the Bankruptcy Court, the updated plan posits substantial relief for FTX's worldwide customers. As per the plan, customers could receive over 90% of the distributable value.
Related: Sam Bankman-Fried told FTX lawyer to 'invent' a legal defense for $8B shortfall
This development is a crucial step towards resolving the customer property feud against FTX creditors and is expected to contribute towards the attainment of the revised plan by the second quarter of 2024.
Magazine: Is it safe to put faith in crypto exchanges post FTX's downfall?
Published At
10/21/2023 7:35:05 AM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.