FTX Creditors Warned of Phishing Scams Ahead of September 30 Payouts

FTX

FTX

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  • Creditors must avoid email links and use the official portal to prevent phishing.
  • September 30 marks the start of FTX’s next creditor payouts.
  • Legal and asset recovery developments continue to affect FTX creditors.

FTX creditors are on high alert following a warning from activist Sunil Kavuri about a new phishing scam. Personal details, including full names and email addresses, of some creditors have reportedly been exposed. It remains unclear whether this leak stems from a recent incident or an older data breach.

Kavuri urged caution, advising creditors not to click on email links, to verify sender addresses carefully, and to log in only through the official FTX claims portal. Given FTX’s history of data security breaches, vigilance remains crucial for all stakeholders.

Upcoming Creditor Payouts

The warning comes just ahead of FTX’s next round of creditor distributions, scheduled to begin September 30. Creditors must have their claims submitted by August 15 to qualify. This follows a $1.9 billion reduction in the exchange’s claims reserve approved by the bankruptcy court.

Payouts will be processed via BitGo, Kraken, and Payoneer. FTX has also petitioned the court to distribute claims in certain restricted overseas jurisdictions, highlighting the complex nature of winding down the collapsed exchange.

Large Asset Movements Raise Questions

In a related development, a wallet linked to FTX and Alameda Research recently moved 190,821 SOL, valued at $35.5 million. This follows a series of large transfers from FTX wallets, sparking speculation about the pace of asset recoveries for creditors.

Legal Battles Continue

FTX’s legal troubles are far from over. Some customers allege that Silicon Valley law firm Fenwick & West knowingly aided FTX’s fraudulent activities. SEC filings claim the firm provided “substantial assistance” to insiders who misappropriated millions. Fenwick & West has denied wrongdoing, stating it only offered standard legal advice.

FTX filed for bankruptcy in November 2022 after it was revealed that customer funds were misused for risky trades via Alameda Research. The scandal culminated in the 2023 conviction of Sam Bankman-Fried, who received a 25-year prison sentence. The fallout continues to impact creditors and the broader crypto industry.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses

Also Read: FTX Reduces Claims Reserve by $1.9B, Accelerating Creditor and Customer Payments