Phishing Scam Targets FTX Customers, Promising Priority Withdrawals

Key Takeaways

FTX creditor advocate Sunil has cautioned about phishing scams
The scam presents the opportunity for FTX clients to withdraw their assets instantly without the inconvenience of waiting periods or court proceedings.

In a recent turn of events, FTX customers have fallen victim to a phishing scam that impersonates FTX Trading Ltd., West Realm Shires Services Inc., and FTX EU Ltd. These fraudulent emails promise FTX creditors a seemingly enticing opportunity: the ability to withdraw their assets instantly without the inconvenience of waiting periods or court proceedings.

The message, dated from October 20, 2023, targets priority clients and reads 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.”

Amidst these fraudulent attempts, FTX creditor advocate Sunil has issued a stern warning to all FTX account holders, cautioning them against falling prey to these phishing scams. Sunil’s post on the matter underscores the relentless evolution of tactics employed by online scammers.

These troubling developments unfold in the context of the bankruptcy of FTX, which recently proposed a plan to refund up to 90% of distributable assets to its customers. The current management at FTX is actively seeking access to additional funds for their creditors, employing methods such as clawbacks of customer money.