Is FTX Sending Phishy Emails And Scaring Users? A Cyber Breach Or Misstep Amid Bankruptcy Deadline

The post Is FTX Sending Phishy Emails And Scaring Users? A Cyber Breach Or Misstep Amid Bankruptcy Deadline appeared first on Coinpedia Fintech News

The line between opportunity and risk can often blur in the crypto market. Recently, users of the bankrupt crypto exchange FTX have found themselves walking this tightrope, as they struggle with a wave of suspicious emails.

Official FTX Email Address Sends “Reset Password” Links

Recently, users of the crypto exchange FTX have been caught off guard by an unexpected flurry of ‘Reset Password’ emails, purportedly from the official FTX email address: support@ftx.com. The twist in the tale? This could potentially be a move to dodge claims on funds locked in the exchange due to bankruptcy.

Users have been receiving password reset emails that direct them to the FTX claims portal. This portal is designed to allow users to submit bankruptcy claims for assets they held on the platform before its unfortunate downfall.

Mossab Hussein, the co-founder of the esteemed cybersecurity firm Spidersilk, has offered some insight into these perplexing emails. According to Hussein, there are two plausible explanations for these unexpected communications. One possibility is that FTX itself is sending these emails to notify users about the claims portal. However, this approach seems to be causing more alarm than reassurance among the users.

The second, and potentially more concerning possibility, is that a malicious actor has obtained a list of email addresses and is attempting to reset their credentials via the portal.

If a hacker has indeed gained access to users’ personal email addresses, they could gain access to a claimant’s account. This would allow them to move funds to their personal wallet, effectively stealing from users who are already facing the loss of their assets due to the platform’s bankruptcy.

Users are advised to be alert of unexpected emails and verify the source of any password reset emails.

FTX Users Must File Bankruptcy Claims By Sept. 29

The U.S. Bankruptcy Court has established a “Customer Bar Date” of September 29, 2023, at 4:00 p.m. Eastern Time. This is the final deadline for customers to submit their claims, with no priority based on when the claims are filed, as long as they are submitted by the deadline.

FTX Debtors notified all known customers about this process. These notices provided instructions on how to submit proofs of claims, including information on accessing the customer claims portal. FTX finds itself approximately $8.1 billion in debt to its customers.

Recently, FTX Australia, the domestic branch of the insolvent crypto exchange, has had its license revoked by the Australian financial services regulator. Despite this, the regulator will permit FTX Australia to offer restricted financial services to facilitate the orderly conclusion of its client dealings until July 12, 2024.

The regulator has also mandated the entity to focus on reimbursing its clients during this period. FTX’s Australian operation had a customer base of approximately 30,000 retail clients and provided services to 132 local firms.