FTX creditors find themselves at risk once again as phishing attackers attempt to exploit the aftermath of the exchange’s November 2022 collapse. These nefarious individuals are offering swift asset withdrawals to those left in limbo following the exchange’s bankruptcy. This latest wave of phishing attempts coincides with the revelation that FTX had sought financial assistance from industry giants like BlackRock and Google just prior to its implosion.
Sunil’s Cautionary Message
On October 20, Sunil, a prominent advocate for FTX creditors, sounded the alarm, cautioning FTX creditors against clicking on any suspicious links contained in emails from attackers masquerading as FTX representatives. These fraudulent emails promise expedited withdrawals and encourage users to transfer their assets to personal wallets, bypassing waiting periods and legal proceedings associated with the bankruptcy process.
In one email, recipients are told, “As a priority client, you can now undergo the withdrawal process for your assets on the FTX platform and deposit them directly into your wallet, eliminating any waiting period and court outcomes.”
A Recurring Threat
This is not the first time FTX creditors have fallen victim to phishing scams. In August, the exchange confirmed that its bankruptcy claims agent, Kroll, suffered a breach, potentially compromising customers’ personal information. It remains unclear whether the current attackers are leveraging the stolen personal data from this incident.
These phishing attacks add another layer of complexity to the ongoing saga for FTX creditors, who are already navigating the path to potential recovery. FTX recently proposed a resolution that could allow users to reclaim up to 90% of their assets starting next year.
FTX’s Pre-Collapse Funding Efforts
As the trial of FTX Founder Sam Bankman-Fried unfolds, new insights into the company’s management practices and the events leading to its downfall continue to surface. Evidence presented during the trial reveals that FTX actively sought funding from corporate heavyweights, including BlackRock and Google, shortly before its collapse. These funding requests coincided with the company’s severe liquidity crisis, ultimately contributing to its implosion.
Several rounds of funding efforts are highlighted, some of which failed to materialize. Notably, in the C1 funding round, FTX identified 15 potential investors, including BlackRock, Google, and Apollo. While discussions were underway with Apollo, BlackRock and Google were reportedly conducting their due diligence. BlackRock’s CEO, Larry Fink, acknowledged that the asset manager had invested $24 million in FTX shortly before its collapse last year.
FTX creditors must remain vigilant in the face of phishing threats, even as they strive to recover their assets amidst the complex legal proceedings and financial turbulence that have engulfed the exchange.