FTX Users Targeted In Deceptive Withdrawal Scam

The bankrupt crypto exchange FTX’s users are reportedly being targeted in a phishing scam offering an exclusive chance to withdraw assets from the bankrupt crypto exchange immediately. 

X’s user and FTX creditor advocate, Sunil, posted a warning about the scam on Oct 20, urging account holders to avoid clicking on suspicious links in emails purporting to be from FTX Trading, West Realm Shires Services and FTX EU. 

The deceptive emails falsely claim priority FTX clients can now undergo the withdrawal process to deposit assets directly into their wallets, bypassing legal proceedings.

One deceptive email read :

 “We are excited to offer the valued priority clients of FTX Trading Ltd., West Realm Shires Services Inc., and FTX EU Ltd., a special opportunity starting today, Oct 20, 2023. 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.”

The scammers behind these emails are evidently targeting users who are eager to withdraw their assets, especially in light of the ongoing legal dispute involving the former CEO of FTX Exchange, Sam Bankman-Fried.

Also Read: Updates on SBF Trial: One of the Biggest Crypto Fraud In History

This enticing offer emerges as FTX creditors recently announced a plan that would return the majority of assets to customers.

The revised plan promises substantial relief for FTX’s global customer base, whose approval is still pending from a bankruptcy court. According to the proposal, customers stand to receive more than 90% of the distributable value.

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