FTX clients face deceptive priority withdrawal scam

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FTX users are reportedly being targeted in a withdrawal scam. X (formerly Twitter) user and FTX creditor advocate Sunil cautioned FTX account holders about the phishing scam and urged them to avoid clicking on dubious links.

Sunil’s X post highlights the ever-evolving tactics online scammers employ.

FTX users have reported receiving deceptive emails purportedly sent by FTX Trading, West Realm Shires Services and FTX EU. The emails falsely offer FTX creditors an exclusive chance for immediate asset withdrawals, bypassing waiting periods and legal proceedings. One example of a fraudulent email states:

“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.”

The email targets users keen to withdraw assets amid ongoing legal disputes involving Sam Bankman-Fried, the former CEO of the exchange.

Related: Sam Bankman-Fried asked FTX attorney to ‘come up’ with legal argument for $8B hole

The scam emerged shortly after FTX creditors achieved a notable milestone by announcing the resolution of customer property disputes.

Pending approval from a bankruptcy court, the revised plan envisions significant relief for FTX’s global customer base. According to the proposal, customers will obtain over 90% of the distributable value.

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