FTX Clients Warned About Deceptive Priority Withdrawal Scam

Scammers Target FTX Users with Phishing Scheme

FTX users are being targeted in a withdrawal scam, according to reports. Sunil, an advocate for FTX creditors, took to Twitter to warn account holders about the phishing scam and advised them to avoid clicking on suspicious links.

Deceptive Emails Offer Exclusive Chance for Immediate Asset Withdrawals

FTX users have reported receiving deceptive emails claiming to be from FTX Trading, West Realm Shires Services, and FTX EU. These emails falsely promise FTX creditors the opportunity for immediate asset withdrawals without any waiting periods or legal proceedings. One example of a fraudulent email reads:

"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."

While this email may seem tempting, especially for users looking to withdraw assets amidst the ongoing legal disputes involving Sam Bankman-Fried, the former CEO of the exchange, it is essential to recognize that it is a fraudulent scheme and has no affiliation with FTX.

Resolution of Customer Property Disputes Marks Milestone for FTX Creditors

Shortly before the emergence of this scam, FTX creditors achieved a significant milestone by resolving customer property disputes. This represents a major step forward in addressing the ongoing legal issues.

Subject to approval from the Bankruptcy Court, the revised plan aims to provide substantial relief for FTX's global customer base. Under this proposal, customers are expected to receive over 90% of the distributable value.

This milestone not only seeks to resolve the customer property dispute initiated against the FTX creditors but also contributes to the confirmation of the revised plan by the second quarter of 2024.