FTX creditors warned of possible phishing scams as withdrawals remain impossible

FTX creditors remain keen as they wait to be made whole after suffering exposure to the exchange following its implosion in November 2022. Meanwhile, the trading platform’s founder Sam Bankman-Fried (SBF) remains on trial, with witnesses revealing theft and unscrupulous use of customer funds.

Also Read: FTX stole over ninety percent of customer funds, with more than $1 billion going towards buy back program

FTX creditors warned of possible phishing scams

FTX creditors have been warned of possible phishing scams, with activist Sunil indicating that withdrawals are still not functional. Based on the report, the creditors have been receiving emails with the promise to give them priority in as far as withdrawals are concerned. The email also advertises instant withdrawals, saying those who follow the guidelines will not have to endure the “waiting period and court outcomes.”

The exchange had been exploring options to return creditors’ funds in fiat currencies rather than crypto, with the court ordering liquidations in batches to minimize impact. FTX’s current administrators hope that staking and careful trading can help the platform liquidate $3 billion in crypto holdings to repay customers.

According to legal experts representing FTX, hedging Bitcoin (BTC) and Ethereum (ETH) will allow the exchange to limit downside risks when liquidating its crypto assets. The exchange is aiming to generate low-risk returns on BTC, and ETH holdings.

The customer reimbursement topic has been rather tumultuous, defined by different issues going as far back as July when the customer claims portal collapsed shortly after going live. The network cited overload.

FXStreet team has contacted the FTX customer support team for a comment. 

Phishing prevalence

Meanwhile, phishing has become a tempestuous topic in the cryptocurrency industry, with bad actors using links to dupe unsuspecting victims. Over the past few months, there have been numerous reports of attacks on different ecosystems.

With phishing attacks becoming increasingly sophisticated, users must remain vigilant especially when it concerns URLs. Particularly when financial transactions or sensitive information is concerned, the use of trusted sources becomes critical with a double emphasis on never clicking on suspicious links.

For a roundup of phishing scams that have been reported over the past several months, visit here.