FTX Investors Reeling Targeted By Scammers Impersonating DOJ

FTX customers around the world no doubt regret their decision to sign up with the now bankrupt cryptocurrency exchange. Adding insult to injury, they are now the target of scammers posing as the US Department of Justice.

Police in Singapore on Saturday warned of a website claiming to be hosted by the DOJ and supposed to help FTX users recover their funds. The site asks visitors to log in with their FTX username and password. He then claims that they will be able to “withdraw their funds after paying the legal fees”.

“The site is likely a phishing website to collect login credentials,” police said, according Asia News Channel.

FTX imploded dramatically this month after receiving $6 billion in withdrawal requests over three days, the crypto equivalent of an old-fashioned bank run. This declared bankruptcy November 11, the same day as the founder Sam Bankman-Fried resigned as CEO. calls for stricter regulations of the cryptocurrency sector have increased significantly following its collapse.

Under new CEO John J. Ray III, FTX launches strategy global asset review as part of the Chapter 11 bankruptcy process. Ray was also involved in cleaning up the mess after the Enron scandal, to which the former US Treasury Secretary Larry Summers compared the FTX fiasco.

This week Ray says he has never seen “such a complete failure of corporate controls and such a complete lack of reliable financial information” as he saw at FTX.

“The whole operation was run by a gang of children in the Bahamas,” said a person familiar with the matter. says CoinDesk on condition of anonymity.

Such comments will be of little reassurance to panicked FTX clients after their holdings in FTX were frozen. But it presents an opportunity for scammers looking to cash in on their desperation.

In Singapore, retail investors aren’t the only ones burned by FTX. State-owned holding company Temasek released a statement this week indicating its stake in the crypto exchange was now worthless. He performed eight months of due diligence on FTX, he said, including reviewing audited financial statements that showed the business was profitable. She invested $210 million in FTX International and $65 million in FTX US.

“While this impairment of our investment in FTX will not have a material impact on our overall performance,” he wrote“We treat any loss of investment seriously and we will learn from it.”

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Robert D. Coleman