FTX Creditors Are Target in a Potential Phishing Scam

Hackers were hit with phishing attacks when FTX creditors thought their woes were over. The bad actors are sending fraudulent emails and links to FTX creditors. 

According to Sunil Kavuri, a prominent FTX Customer Ad-Hoc Committee member who sounded the alarm on X, there may have been a potential data leak leading to the unauthorized access. 

FTX Creditor Blames FTX and Kroll For Data Leak

Kavuri suspects that FTX or its claims agent, Kroll, must have exposed users’ full names and email addresses, giving the hacker easy access. 

The bad actors are disguised as the exchange and trying to defraud creditors. In the screenshot shared by Kavuri, the bad actors urged recipients to verify their recovery phrase for security reasons. 

Embedded in the email was a malicious link that likely led to the theft of sensitive information. 

FTX creditors are advised to exercise caution this season and avoid clicking the phishing link. Before making any move, Kavuri encouraged creditors to verify the sender’s address and confirm information and updates on FTX’s official portal.

FTX Creditors to Receive Funds From Feb. 18

Defunct Bahamian-headquartered cryptocurrency exchange FTX imploded in 2022 and is scheduled to commence a payout of $1.2 billion to affected customers by February 18. This was after the exchange set January 20 as the deadline for users to fulfill pre-distribution requirements for claims of up to $50,000. This category of creditors is the “convenience class.”

The news relieved these creditors, especially after they had waited more than two years to be paid. With the $1.2 billion, they could receive as much as 119% of their adjudicated claim value. In addition to the different stages of payouts, including larger claims, FTX will distribute up to $17 billion.

Payout Requirements For FTX Creditors 

Pre-distribution requirements for the payout include completing the Know Your Customer (KYC) verification process, providing tax documentation, and registering with BitGo or Kraken, the designated distribution partners. FTX creditors who fail to meet these requirements will be categorized as ineligible for the payout. 

At the time of this writing, these creditors have barely 24 hours to complete the entire process. However, if their challenges are sorted in a timely manner, they may qualify for future repayments.