Bankrupt crypto exchange FTX has acknowledged a recent spate of third party scams

FTX, a defunct cryptocurrency exchange, has admitted that its clients have recently been targeted by a series of scams and frauds perpetrated by third parties. These schemes were designed to take advantage of the consumers’ dire financial circumstances.

On February 3, FTX issued a warning to its clients about recent efforts by fraudsters about scam attempts, including asking them for money, fees, payments, or account passwords. These scam attempts were made by inquiring about recent attempts by fraudsters about scam attempts.

The firm issued a warning to its clients, saying, “We are aware of active third-party scams and frauds aiming to take advantage of FTX customers.”

FTX added that its debtors and agents will never ask customers to pay fees or provide account passwords in connection with the “return or prospective return of customer assets.” FTX also encouraged potential victims to contact the official FTX debtors email address to confirm the legitimacy of the messages. 

Since the collapse of FTX a few of months ago, con artists have been stepping up their game in an attempt to capitalise on the situation.

Late in the month of December, the Oregon Division of Financial Regulation issued a warning to the public that con artists were looking for chances to “re-victimize people who have previously been injured and are attempting to discover methods to recoup their losses.”

It referenced a bogus website that claimed to be administered by the United States Department of State and was trying to restore FTX customers’ assets to them while also requesting account information from such customers.

In November, a video purporting to include FTX CEO Sam Bankman-Fried and circulating on the internet falsely claimed that the company will increase the amount of cryptocurrency compensation given to customers. It enticed users to visit a malicious website by promising a cryptocurrency giveaway in return for tokens that were transmitted to the criminals.

In the meanwhile, as part of the most recent development in the proceedings of FTX’s bankruptcy, the states of California, Texas, and New Jersey have joined requests for an independent audit of the company’s financial accounts.

According to yet another article on Bankman-Fried, which was released by Reuters on February 2nd, it has been disclosed that the crypto entrepreneur is in discussions with federal prosecutors to settle a disagreement over the terms of his bail.

This past week, the judge who is presiding over the lawsuit placed a temporary gag order on Bankman-Fried, preventing her from communicating with workers of FTX or Alameda.


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Kevin Rose, co-founder of Moonbirds, falls victim to phishing attack

Kevin Rose, who is also the co-founder of the nonfungible token (NFT) collection Moonbirds, has been a victim of a phishing scam, which has resulted in the loss of nonfungible tokens with a combined value of over $1.1 million that were individually owned by Kevin Rose. Moonbirds was a collection of nonfungible tokens that were named after birds.

On January 25, the news was made to the 1.6 million people who follow the person who created the NFT and a co-founder of PROOF on Twitter. He advised those people to refrain from collecting any Squiggles NFTs until his team was able to have them marked as stolen until his team could do so. Until they could do so, he urged them to wait to acquire any Squiggles NFTs.

Following that, sometime in the neighbourhood of two hours later, he revealed it in a following tweet.

It is believed that Rose’s non-financial assets were depleted when he authorised a bogus signature that transferred a significant amount of his non-financial assets to the exploiter. This theory is based on the fact that Rose may have been the victim of financial exploitation. This was the occurrence that resulted in Rose’s NFTs being used up completely. Because of this, Rose’s natural defence mechanisms (NFTs) were used to their utmost potential.

An independent investigation that was conducted by Arkham discovered that the exploiter stole at least one Autoglyph, which has a floor price of 345 Ether, at least nine OnChainMonkey items, each of which is worth at least 7.2 ether, at least 25 Art Blocks, also known as Chromie Squiggles, which are each worth at least a total of 332.5 ETH, and at least one OnChainMonkey item that is worth at least a total of 332.5 ETH

It is anticipated that a total of at least 684.7 ETH, which is equivalent to around $1.1 million, was successfully obtained.


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Scam alert! Binance CEO warns users of massive SMS phishing scam

Binance CEO Changpeng Zhao has alerted the crypto community against a ‘massive’ SMS phishing scam targeting Binance customers.

On Friday, CZ tweeted alerting users of a phishing scam campaign directed at Binance users through SMS.

As per the screenshot shared by CZ, the scam involves sending users a text message with a link to cancel withdrawals, leading users to a fake website designed to harvest their login credentials.

The CEO has warned its users not to click on any links from SMS messages and advised them to always type the URL for the exchange into their browsers manually.

Several cases of hacking and phishing have emerged so far in 2022, with some platforms suffering significant losses as a result of these attacks.

Related: Hodlers beware! New malware targets MetaMask and 40 other crypto wallets

As reported by Cointelegraph, the Wormhole token bridge was subject to a security vulnerability on Wednesday, resulting in the loss of 120,000 Wrapped Ether (wETH) tokens ($321 million) from the platform. On Jan. 17th, $33.8 million in crypto assets were stolen from following a security breach.

Users of digital currencies have also been advised against a new malware that targets browser plugin wallets such as MetaMask and Coinbase Wallet.