New Rounds of Phishing Attacks Underway for FTX Users, Binance CEO Alerts

Changpeng ‘CZ’ Zhao, CEO of Binance crypto exchange, took to the X platform to warn users about new rounds of phishing threats already underway for users of the defunct FTX platform.

Alerts Raised by Changpeng Zhao

Zhao highlighted that these attacks have been linked to a recent data leak from Kroll and appear to have been facilitated by a SIM swap on an employee’s account. The Binance CEO added that users of prominent crypto lender Blocki and insolvent Genesis crypto exchange are also predisposed to the new phishing attacks.

New rounds of phishing attacks already underway for the poor users of FTX, BlockFi, Genesis, as a result of the Kroll data leak, which seems to be a result of a SIM swap on an employee.🤷‍♂️

Learn to protect yourself. Learn about phishing attacks👇https://t.co/AtcevQciVR pic.twitter.com/pbHFnhsArK

— CZ 🔶 Binance (@cz_binance) August 27, 2023

Zhao said the current surge of phishing attacks targeting FTX users is directly connected to a data leak from FTX’s bankruptcy case claims agent, Kroll. The CEO’s statements come only days after FTX announced that its claims agent Kroll suffered a cybersecurity breach, exposing non-sensitive customer data of certain claimants in its pending bankruptcy case.

While the exact nature of the attack was not stated at the time, Zhao has revealed that a SIM swap on an employee’s account played a pivotal role in this recent incident. A SIM swap is a harmful strategy in which attackers mislead cellular providers into moving a victim’s phone number to a device controlled by them. 

This allows the attackers to obtain authentication codes and other sensitive information associated with the victim’s phone number, circumventing security measures such as two-factor authentication. The broad threat has also forced FTX to suspend activities on its claims portal as reported by Coingape yesterday.

Threats of Phishing Attack

The CEO of Binance added that users must take proactive steps to protect themselves against phishing attacks. Zhao’s concern may have stemmed from the fact that phishing attacks represent one of the most deceitful threats in the digital landscape. 

Cybercriminals use deceit and psychological manipulation to persuade unsuspecting users to reveal sensitive information ranging from login passwords to financial information. These attacks have the potential to be disastrous, resulting in identity theft, financial loss, and illegal access to sensitive accounts.

However, users can create a safer digital environment for themselves, and contribute to the broader defense against cybercriminals by staying informed, remaining vigilant, and adopting robust security measures.