FTX clients face deceptive priority withdrawal scam
Recently, a fraudulent priority withdrawal scam has surfaced, targeting FTX users. Sunil, an advocate for FTX, has utilized the social platform X (formerly known as Twitter) to caution FTX account holders about this phishing scheme and urges them to avoid clicking on any dubious links.
Sunil's message underscores the ever-evolving tactics employed by online scammers to deceive even the most vigilant individuals, emphasizing the need for constant vigilance.
FTX users have reported receiving deceptive emails purportedly sent by FTX Trading Ltd., West Realm Shires Services Inc. and FTX EU Ltd. These emails falsely offer FTX creditors an exclusive chance for immediate asset withdrawals, bypassing waiting periods and legal proceedings. The fraudulent email content is as follows:
“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 email might seem alluring, particularly to users keen to withdraw assets amid the ongoing legal disputes involving Sam Bankman-Fried , the former chief executive officer (CEO) of the exchange. Nevertheless, it's crucial to discern that this email constitutes a fraudulent scheme and has no association with FTX.
Furthermore, this update emerged shortly after FTX creditors achieved a notable milestone by announcing the resolution of customer property disputes. This represents a substantial advancement in addressing the ongoing legal issues.
Pending approval from the Bankruptcy Court, the revised plan envisions significant relief for FTX's global customer base. According to this proposal, customers are projected to obtain over 90% of the distributable value.
Related: Sam Bankman-Fried asked FTX attorney to ‘come up’ with legal argument for $8B hole
This represents a significant milestone designed to resolve the customer property dispute initiated against the FTX creditors, while also contributing to the confirmation of the revised plan by the second quarter of 2024.
Magazine: Can you trust crypto exchanges after the collapse of FTX?
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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