Scam Alert: FTX Customers Targeted for Fake Priority Withdrawal

In a recent incident, FTX customers are being targeted for a fake priority withdrawal scheme. FTX activist Sunil has taken to the social media platform X to warn FTX creditors about the ongoing phishing scam and advises users not to click on any suspicious links.

The Scam Email

FTX customers have been receiving scam emails that claim to be from FTX Trading Ltd., West Realm Shires Services Inc., and FTX EU Ltd. The email promises FTX creditors a special opportunity, allowing them to withdraw their assets instantly without any waiting period or court outcomes. The fraudulent email reads as follows:

“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, October 20th, 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 seems enticing and may appear convincing to some users, especially those who have been eagerly waiting to withdraw their assets from the FTX platform due to ongoing legal issues with Sam Bankman-Fried, former CEO of the exchange. However, it’s essential to recognize that this email is a scam and not affiliated with FTX in any way.

Sunil’s message serves as a valuable reminder that online scammers are continually evolving their tactics to trick even the most cautious individuals.

FTX Debtors Promises Customer Shortfall Settlement

Meanwhile, the update comes only days after FTX debtors made a remarkable stride by announcing the settlement of customer property disputes, signaling a significant step towards resolving ongoing legal matters. 

Subject to approval by the Bankruptcy Court, the proposed amended plan anticipates substantial relief for FTX’s customers worldwide. Under this plan, customers are expected to receive more than 90% of the distributable value. 

This is indeed a noteworthy development that aims to address the customer property dispute initiated against the FTX debtors, and at the same time, bolster the confirmation of the amended plan by the second quarter of 2024.