- FTX is in the news for less than savory reasons.
- Exchange warns customers of scammers pretending to want to repay their losses.
- FTX has incurred the anger of the general public since November.
FTX has continued to trend on the news for three months since its collapse in November last year; as the investigation on the exchange continues to unfold, more reports make it to the public.
Due to the number of creditors that the crypto exchange amassed, there are now cases of scammers pretending to be them to steal from the creditors of FTX.
The scammers picked up the method of tricking customers by promising them a future return of their assets currently locked in FTX since the collapse of the exchange.
The exchange acknowledged a series of third-party scams and fraudulent activities aimed at stealing from their already embattled customers. The exchange moved to reach out to their customers and alert them about the fraudulent attempts by scammers, which included asking them for their personal information, fees, and money.
The company also made it known that it would never ask its customers to pay fees or provide their account passwords to return their assets to them. It also encouraged the victims of the scammers to contact the FTX debtor email to confirm the authenticity of any messages they receive.
Since the collapse of the crypto exchange, Scammers have come up with different ways to take advantage of FTX’s bankruptcy. Around December, the Oregon Division of Financial regulations warned about scammers who were trying to reap from the victims of the FTX massive debt and were trying to get back their assets.
There was a fake website that had been created, which was cosplaying as the U.S department of state that was working towards getting FTX creditor’s assets back to them and requesting their account details, which was all a farce.
In November, there was a deep-faked video of the former CEO of the exchange making its way around with claims of doubling customer crypto compensation after their losses from exposure to the company.
The video was created to lure its victims into visiting a website offering the promised crypto giveaway in exchange for sending tokens to scammers.
FTX has already faced backlash from the crypto space since its collapse. The exchange is just now recovering its funds and making the moves to begin to pay back its creditors from the assets and funds recovered, which is around $5 billion, so the presence of a scammer will destroy the reputation that the company is trying to build up.
Conclusion
The exchange has, however, been making progress in its effort to secure recoveries. FTT had lost over 90% of its value since November, when FTX filed for bankruptcy, and the lawyers are fast at building up the assets and the reputation of the exchange to begin paying back its debts.
